- According to bankers, taking the three month moratorium on loan repayment could become an issue for these MSME borrowers
- If a customer has not availed of the moratorium, then he is considered to be a premium customer eligible for a loan under the scheme
MUMBAI: Banks, non-banking finance companies (NBFCs) and fintech companies that are into the business of lending are looking at utilising the government’s ₹3-lakh-crore Emergency Credit Line Guarantee Scheme (ECLGS) for helping the micro, small and medium enterprise (MSME) sector. Many institution have already started reaching out to their clients and expect to start disbursements by mid-June, which could see higher credit growth in the first quarter.
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On Tuesday, State Bank of India Chairman Rajnish Kumar said that the bank has released ₹2,300 crore to 22,000 MSME loan accounts on a single day. As on 31 December 2019, SBI had an SME loan book of ₹2.78 lakh crore or 14% of the total loan book. “We are bullish on the ₹3-lakh-crore scheme as risk weight is zero and we don’t have to provide capital. This is a good scheme for supporting the MSME sector,” said Kumar.
According to Arvind Kapil, country head (retail lending) at HDFC Bank, loan requests from MSMEs are increasing since lockdown lifted. “Banks have pre-approved customers, who are eligible for the ₹3 lakh guarantee scheme. These customers have been sent SMSs, emails to avail of the scheme. Our bank’s relationship managers are meeting up with customers to attain the documentation. Post checking the documents, ad hoc scheme will be disbursed,” he said.
Source: livemint
