Covid-19 Relief Package crosses Rs 79,000 crore till last Saturday : Nirmala Sitharaman

On June 23, the Finance minister said in a statement, “The government’s collateral-free loan scheme worth Rs 3 lakh crore continued to support MSMEs with emergency credit to cope up with the COVID impact. The amount sanctioned under the scheme crossed Rs 79,000 crore mark as of June 20, 2020, while the amount disbursed stood at Rs 35,000 crore”.

There is an approx. 800 per cent (or about 799.2 per cent) increase in loan disbursement from Rs 3,892 crore as of June 1, this year. The government has been providing details relating to the number of MSME benefitted, the amount sanctioned and disbursed under the scheme.

Finance Minister said, ” MSMEs with an outstanding credit of up to Rs 25 crore as on February 29, which is less than or equal to 60 days past due as on that date along with up to Rs 100 crore in annual turnover are eligible to seek credit under the scheme. On the other hand, SIDBI has sanctioned more than Rs 10,220 crore to NBFCs, Micro Finance Institutions and banks for lending to MSMEs under the RBI’s Special Liquidity Facility announced in March-April 2020″.

FM, Nirmala Aitharaman added, “This refinance by SIDBI & NHB is in addition to ongoing schemes through which over Rs 30,000 crore has been sanctioned”. According to the Finance Ministry, “NBFCs & MFIs are also supported under the Extended Partial Guarantee Scheme where approvals have crossed Rs 5,500 crore while transactions for another Rs 5,000 crore are currently going through the approval procedure”.

RBI said, “Gross bank credit growth to micro and small enterprises (MSEs) by banks in the first month of FY 2020-21 stood at 3.3 per cent. The credit grew to Rs 11 lakh crore from Rs 10.65 lakh crore in April FY20”.

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