Banks sanction Rs 1.30 lakh crore loan for MSME

As of July 23, out of a package of Rs 3 lakh crore from banks, banks have released a package of Rs 82,065 crore. This constitutes 27.35 percent of the total package. Earlier, till July 1, this figure was up to Rs 52,255 crore.

Out of the Rs 3 lakh crore package announced by the Central Government for the relief of micro, small and medium industries, 43 percent share has been approved. According to government data, 43.5% of the funds have been approved by the banks so far under the Emergency Credit Line Guarantee Scheme.

Initially, this pace was slow, but in the last few weeks a large number of loans have been issued by banks to micro, small and medium industries. According to the data, private and public banks have shown a boom in loan issuance. Till 1 July, loans worth Rs 1.10 lakh crore were sanctioned, which has now increased to 1.30 lakh crore.

Not only this, the data of transferring loan amount in the accounts of borrowers has also increased rapidly. As of July 23, out of a package of Rs 3 lakh crore from banks, banks have released a package of Rs 82,065 crore. This constitutes 27.35 percent of the total package.

Earlier, till July 1, this figure was up to Rs 52,255 crore. Up to Rs 3 lakh crore is to be released by banks under the central government package. Apart from this, such customers who have currently taken loans and have not converted into NPAs, they are being given an additional 20 per cent of the loan already taken.

A government official said that in the next three months, the target of loans of Rs 3 lakh crores to MSMEs can be achieved by banks. Under this scheme, launched on May 23, loans are to be distributed by October 31 or up to a limit of Rs 3 lakh crore. All such MSMEs whose turnover is up to Rs 100 crore, are to be given loans under this scheme.

Of the Rs 1.30 lakh crore loan sanctioned by the banks till July 23, an amount of Rs 58,673 crore has been sanctioned by private banks, while public sector banks have sanctioned loans worth Rs 71,818 crore. Private banks have largely issued loans to borrowers who have large accounts.

So far, an amount of Rs 34,433 crore has been released by private banks in the account of the borrowers. Apart from this, public sector banks have released an amount of Rs 47,631 crore.

According to the average, private banks have disbursed large loans, while state-run banks have also helped small industries. Private banks issued an average of Rs 14.95 lakh per borrower, while the average of public sector banks is Rs 2.66 lakh.