Banks sanctioned Rs 1.43 lakh crore loans under credit guarantee scheme: FM Nirmala

New Delhi: Union Finance Minister Nirmala Sitharaman on Friday said that a total amount sanctioned under the 100 per cent Emergency Credit Line Guarantee Scheme by public sector banks and private banks stands at Rs 1,43,318.09 crore.

"As of 12 Aug 2020, the total amount sanctioned under the 100 per cent Emergency Credit Line Guarantee Scheme by #PSBs and private banks stand at Rs 1,43,318.09 crore, of which Rs 98,665.93 crore has already been disbursed," she tweeted.

"Under the 100 per cent ECLGS, the loan amounts sanctioned by Public Sector Banks increased to 74,502.85 crores, of which Rs 54,677.11 crore has been disbursed as of 12 Aug 2020," she said in another tweet.

"Compared to 03 Aug 2020, there is an increase of Rs 5,731.55 crore in the cumulative amount of loans sanctioned & an increase of Rs 6,551.93 crore in the cumulative amount of loans disbursed by both #PSBs and private sector banks combined as on 12 Aug 2020," the Finance Minister stated.

Emergency Credit Line Guarantee Scheme was launched by the Government to provide much-needed relief to the MSME sector by incentivizing member lending institutions to provide additional credit of up to 3 lakh crore at low interest to enable MSME to meet their operational requirements in the Covid-19 crisis.

This scheme provides 100 per cent guarantee coverage by National Credit Guarantee Trustee Company to member lending institutions.