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• This big decision by SBI under Emergency Credit Scheme
• Disbursement of loans of around ₹70,000 crore to ₹80,000 crore
• What did SBI Chairman explain?

ECLGS 5.0 scheme : State Bank of India is gearing up to disburse loans of around ₹70,000 crore to ₹80,000 crore. SBI has taken this big decision under the ‘Emergency Patahmi Yojana’ launched by the government. Giving more details in this regard, SBI Chairman C.S. Shetty has given detailed information. Who can get this loan? Who can qualify? What is required for this? Let’s know in detail.

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What did SBI Chairman explain?

SBI Chairman C.S. Shetty explained that the banking sector expects the scheme to be fully operational in the next 8 to 10 days. He further explained that the scheme is open to all and participation in it will be completely voluntary. The Bank is working in collaboration with various MSME organizations to implement this scheme, so that small businesses can have easy access to credit.

According to a report in ‘The Economic Times’, SBI Chairman C.S. Shetty explained that the scheme is open to all and participation in it will be completely voluntary. He expressed hope that all technical and procedural matters to this scheme would be settled in the next 8 to 10 days. CS According to Shetty, SBI will be able to provide loans of around Rs 70,000 crore to Rs 80,000 crore through this scheme.

Loans up to ₹2.55 lakh crore

On Wednesday, the Union Cabinet approved ‘ECLGS 5.0’; The objective of this scheme is to provide relief to MSME i.e. Micro, Small and Medium Enterprises and aviation sector. The government has clarified that the scheme will enable eligible businesses to avail additional loans of around ₹2.55 lakh crore. It also includes a special bailout of ₹5,000 crore for airlines, aimed at providing relief to companies struggling with liquidity crisis.

Loans equal to full working capital for airlines

Under the scheme, MSME companies will be eligible for additional loans up to 20 percent of their maximum leveraged Working Capital till March 2026. The loan ceiling for MSME sector has been fixed at Rs 100 crore. On the other hand, airlines will be eligible for loans equal to their entire working capital requirements; However, this limit will be up to Rs 1,500 crore for each borrower. But to avail this facility it will be mandatory to fulfill certain conditions. For the MSME sector, the tenure of this loan will be five years, including an initial one-year ‘grace period’ on repayment of loan installments. In contrast, the loan tenure for the aviation sector has been fixed at seven years, with a grace period of two years. The government has made it clear that sectors unaffected by the West Asian crisis such as education, defence, horticulture, energy and sugar industries have not been included in the scheme.

Assistance to businesses

The objective of the ‘Emergency Credit Line Guarantee Scheme’ (ECLGS) 5.0 is to provide relief to businesses from the financial challenges arising from the ongoing tensions in West Asia and the Iran crisis. Through this scheme, additional working capital will be made available to the Micro, Small and Medium Enterprises (MSME) as well as the aviation sector. The government believes that timely financial liquidity support will enable businesses to retain employment, keep supply chains intact and production processes running smoothly. This additional credit provided through banks and financial institutions will provide a strong support to Indian businesses and will play an important role in maintaining the stability of the entire Business Ecosystem.

1.1 crore MSME accounts will benefit

Financial Services Secretary M. Nagaraju said that the government has taken this proactive step to ensure that there is no major adverse impact on the MSME sector. Such a robust scheme to support small businesses was urgently needed, he stressed. According to SBI Research, the scheme ‘ECLGS 5.0’ is expected to benefit approximately 1.1 crore MSME accounts. This amount is roughly 45% of the total MSME portfolio. The report further states that each eligible account can get an additional credit of ₹2 lakh to ₹2.3 lakh on an average.

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