State-owned lenders sanctioned loans worth ₹3,200 crore for small businesses on June 1 under the recently announced emergency credit line guarantee Scheme, the finance ministry said on Monday. "On a single day 1 June ‘20, PSBs have sanctioned collateral-free loans worth ₹3,200 crore through the Emergency Credit Line Guarantee Scheme," finance minister Nirmala Sitharaman's office said in a tweet.
It further said that small businesses in more than 3,000 tier-II towns under the scheme. The collateral-free loan will enable the micro, small and medium enterprises (MSMEs) to pay salaries, rent, and restocking expenses.
Last month, finance minister Nirmala Sitharaman had announced an emergency credit line guarantee scheme (ECLGS) as a part of