Banks sanction loans worth Rs 3.1 lakh crore to MSMEs under ECLGS, says FM Nirmala Sitharaman

Finance Minister Nirmala Sitharaman presented Budget 2022 in the Parliament on February 1.

Finance Minister Nirmala Sitharaman on Thursday said banks have sanctioned loans worth Rs 3.1 lakh crore under the Emergency Credit Line Guarantee Scheme (ECLGS) for the MSME sector that was impacted by disruptions due to the coronavirus (COVID-19) pandemic. The scheme has been extended till March 2023.

"Those MSMEs who still wants to benefit out of it are welcome to use it… the amount of loan sanctioned under the ECLGS is Rs 3.1 lakh crore and guarantee space is still Rs 1.4 lakh crore," she said in her 100-minute reply to the discussion on Union Budget 2022-23 in Lok Sabha.

As much as Rs 2.36 lakh crore have been disbursed to MSMEs, she said.

She also said that PM Mudra Yojana has created 1.2 crore additional employment since its launch in 2015. "With regard to employment, urban unemployment has declined to pre-pandemic levels due to various efforts of the government," she said.