The Rashtriya Swayamsevak Sangh (RSS)-linked industry organization ‘Small Industries Bharti’ (LUB) has informed Union Finance Minister Nirmala Sitharaman that private banks are delaying the implementation of the Rs 3 lakh crore loan scheme for MSMEs
Sitharaman had called LUB general secretary Govind Lele to get feedback on the implementation of the Emergency Credit Line Guarantee Scheme (ECLGS) for MSMEs. Lele told him that major public sector banks such as State Bank of India and Bank of India started lending as per the plan. But three-year estimates of revenue and profitability are sought for loan approval at the branch level.
At the same time, private banks are delaying implementing the scheme. Hence, they need to be instructed to implement the scheme immediately. He said that to meet the target, bank officials are giving preference to high-value loan accounts. He also requested the Finance Minister to include non-scheduled banks in the scheme.