The sanctions for working capital loans doubled in 2 days: Nirmala Sitharaman

NEW DELHI: A day after, the Indian hinted economy is “ready to recover” as indicated by high loan levels sanctions of banks over the past two months, Finance Minister Nirmala Sitharaman Saturday pointed out that the banks are not leaving any stones turned to ensure the flow coronavirus situation does not cause liquidity crisis for companies.

In a tweet from Nirmala Sitharaman’s office, it said that almost all eligible borrowers for emergency lines of credit and working capital have been contacted by banks and the sanctions have taken off in the last few days.

“PSBs contacted more than 95% of borrowers eligible for emergency credit lines and working capital improvement between March 20 – May 6. The sanctioned amount jumped to Rs 54,544 crore, more than double the amount two days ago . Number of cases covered more than tripled, “Sitharaman’s office tweeted.

On Friday, the finance minister’s office had tweeted that state banks have sanctioned loans worth Rs 5.66 lakh crore over the past two months to approx. 4.2 million account holders belonging to micro, small and medium enterprises (MSMEs), retail, agriculture and business sectors, indicating that the Indian economy is on the road to recovery.

The government ensures that the current coronavirus pandemic is prevented from doing a serious blow to the Indian economy. It wants investments not to be stopped and banks to ensure that all eligible borrowers receive sufficient funds.

Sitharaman’s office tweet on Friday had raised a few votes on whether the sanctions would ultimately result in payouts as the current crisis can prevent entities from taking out loan payments.

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