The scheme is the biggest fiscal component of the ₹20-lakh crore Self-Reliant India Mission package announced by Finance Minister Nirmala Sitharaman last month.

The Finance Ministry on Thursday said public sector banks have disbursed 12,200.65 crore till June 9, under the 3 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for the MSME sector, hit hard by the coronavirus-induced lockdown.
Public Sector Banks (PSBs) have sanctioned loans worth 24,260.65 crore under the 100% ECLGS for the Micro, Small & Medium Enterprises (MSME) sector starting June 1.
The scheme is the biggest fiscal component of the 20-lakh crore Self-Reliant India Mission package announced by Finance Minister Nirmala Sitharaman last month.
As of 9 June 2020, #PSBs have sanctioned loans worth 24,260.65 crore under the 100% Emergency Credit Line Guarantee Scheme, out of which 12,200.65 crore have been disbursed, Ms. Sitharaman said in a tweet.
Business units of Tamil Nadu have got highest cumulative sanction of 2,637 crore from banks, while disbursement was to the tune of 1,727 crore at the end of June 9.
It is followed by Uttar Pradesh with a sanction of 2,547 crore, with disbursement of 1,225 crore.
Bank wise, as per the table provided in the tweet, indicated market leader State Bank of India (SBI) has sanctioned 13,363 crore, while disbursement was nearly half at 7,517 crore at the end of June 9.
It is followed by third largest lender Bank of Baroda with a sanction of 1,893 crore, but disbursement was at 526 crore.
Union Bank of India had better disbursement rate as against sanction of 1,842 crore, the Mumbai-based lender has disbursed 794 crore.
The second largest lender Punjab National Bank was somewhat a laggard, as per the data, with the cumulative sanction of 1,772 crore but the disbursement was nearly one-third at 656 crore at the end of June 9.
On May 21, the Cabinet had approved additional funding of up to 3 lakh crore at a concessional rate of 9.25% through ECLGS for the MSME sector.
Under the scheme, 100 per cent guarantee coverage will be provided by National Credit Guarantee Trustee Company (NCGTC) for additional funding of up to 3 lakh crore to eligible MSMEs and interested Micro Units Development and Refinance Agency (MUDRA) borrowers, in the form of a guaranteed emergency credit line (GECL) facility.
For this purpose, a corpus of 41,600 crore was provided by the government, spread over the current and next three financial years.
The scheme will be applicable to all loans sanctioned under GECL facility during the period from the date of announcement of the scheme to October 31 or till an amount of 3 lakh crore is sanctioned under GECL, whichever is earlier.
The main objective of the scheme is to provide an incentive to member lending institutions to increase access and enable availability of additional funding facility to MSME borrowers, in view of the economic distress caused by the COVID-19 crisis, by giving them 100% guarantee for any losses suffered by them due to non-repayment of the GECL funding by borrowers.
All MSME borrower accounts with an outstanding credit of up to 25 crore as on February 29, which were less than or equal to 60 days past due as on that date, ie, regular, SMA-0 and SMA-1 accounts, and with an annual turnover of up to 100 crore, would be eligible for GECL funding under the scheme.