PNB sanctions loans to about 3 lakh MSMEs under credit guarantee scheme

Punjab National Bank has sanctioned loans close to 3 lakh accounts under the Rs 3-lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for MSME sector, impacted badly due to economic slowdown triggered by COVID-19 outbreak.

Punjab National Bank has sanctioned loans close to 3 lakh accounts under the Rs 3-lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for MSME sector, impacted badly due to economic slowdown triggered by COVID-19 outbreak. On the occasion of International MSME Day, the bank reiterated its commitment towards the MSME sector, which has been the engine of economic growth and promoting equitable development.

"India has over 6.33 crores of MSMEs and the numbers are only multiplying. #PNB has an array of products tailor-made for MSME entrepreneurs & their businesses to help them thrive and sustain better," the bank said in a tweet. The bank has conveyed sanctions in 2,96,753 accounts, amounting to Rs 6,757 crore under Guaranteed Emergency Credit Line (GECL) till June 25, a senior bank official said on Saturday.

Out of this, disbursement in 59,204 accounts amounting to Rs 2,030 crore have taken place, the official added. The scheme will be applicable to all loans sanctioned under GECL facility during the period, from the date of announcement of the plan to October 31, or till an amount of Rs 3 lakh crore is sanctioned under the scheme, whichever is earlier.

The main objective of the scheme is to provide an incentive to member lending institutions to increase access and enable the availability of additional funding facility to MSME borrowers, in view of the economic distress caused by the COVID-19 crisis, by giving them 100 per cent guarantee for any losses suffered by them due to non-repayment of the GECL funding by borrowers.