SBI Has Sanctioned ECLGS Loans To 4 Lakh MSMEs

The State Bank of India (SBI) has sanctioned to over 4 lakh accounts under the central government's Rs 3 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) announced as aid for the MSME sector affected significantly by the coronavirus pandemic.

On the occasion of International MSME Day, SBI's managing director C S Shetty addressed the public sector bank's customers and employees from the sector via video conference.

SME products were highlighted to the customers to increase awareness and enable them to choose the right product for their business, SBI said in a statement.

Across the nation, the bank has sanctioned loans to over 4 lakh MSMEs (micro, small and medium scale enterprises) under the ECLGS facility so far, a senior bank official said.

About 20,000 crore worth of loans have been sanctioned to eligible under the scheme that was launched on 1 June. Earlier this week in a statement, the finance ministry had that of the Rs 79,000 crore sanctioned, SBI was among the top lenders under ECLGS.

As part of the Aatmanirbhar Bharat package, that was a part of government's COVID-19 relief, Rs 3 lakh crore was announced as credit support to MSMEs and small businesses under the ECLGS. Loans under the scheme are pre-approved and eligible enterprises can borrow up to 20 percent of their existing borrowing as additional loans at capped interest rates.

The scheme is applicable to loans sanctioned under the GECL facility during the period from the date of announcement of the plan to 31 October or till an amount of Rs 3 lakh crore is sanctioned, whichever is earlier.