Guarantee-Free Loans for MSMEs, Entrepreneurs: These 3 Govt Banks Have Sanctioned Maximum Loans
During the lockdown days, PM Modi-led BJP Govt had announced the ambitious Atma Nirbhar Bharat Abhiyaan, or Self-Reliant India Mission, which encouraged more manufacturing, more services, more innovations right in India, by Indians, for Indians.
Under this program, Govt had announced guarantee-free loans for Indian entrepreneurs and SMEs so that they can expand their business, and make it even bigger.
Now, some interesting data and numbers are coming in, regarding the loan distribution by Govt banks.
Specifically, three PSU banks have emerged as the frontrunners in dispersing maximum loans till now.
These 3 Govt Bank Gave Maximum Loans To Entrepreneurs
Govt of India’s Emergency Credit Line Guarantee Scheme (ECLGS) had been rolled out, under Atma Nirbhar Bharat Abhiyaan. Govt has allocated loan facility of Rs 3 lakh crore to the entrepreneurs, MSMEs and startups under this program.
Emergency Credit Line Guarantee Scheme (ECLGS) was announced by Finance Minister Nirmala Sitharaman last month, and the sanctioned amount of Rs 3 lakh crore was planned to be dispersed by October end.
As of now, State Bank of India, Punjab National Bank and Canara Bank have emerged as the top three Govt banks, which have dispersed maximum loans under this scheme.
Which Banks Have Provided How Much Loans?
While State Bank of India has recorded the maximum cumulative sanctions and disbursements, PNB is at #2 position.
SBI has allocated Rs 21,027 crore of sanctions and Rs 15,112 crore of disbursements as of now.
Punjab National Bank (PNB) has sanctioned Rs 9,464 crore worth of loans under the Emergency Credit Line Guarantee Scheme, without guarantee.
Interestingly, SBI has NPAs of Rs 25,000 crore, and PNB has NPAs of Rs 14,000 crore.
In case their guarantee-free loans to SMEs aren’t returned, then it will add to their overall NPA burden.
Canara Bank, along with Bank of Maharashtra, Union Bank of India and Bank of India too have dispersed more than Rs 5000 crore of guarantee-free loans to MSMEs and entrepreneurs.
44% of Rs 3 lakh crore sanctioned amount under this scheme has been allocated to the entrepreneurs.
We will keep you updated, as more details come in.