Banks in Gujarat disburse over Rs 2,400 crore to MSMEs

Honouring the Gujarat Chief Minister Vijay Rupani's appeal to support MSMEs hit by coronavirus-induced lockdown, nationalised banks in the state disbursed loans worth over Rs 2,400 crore in the last 15 days.

Out of total 89,767 micro, small and medium enterprises (MSMEs) which had applied for loans during this two weeks time, almost 97 per cent or 87,834 applications were approved by the banks, said a release by the Gujarat government on Tuesday.

While loans worth Rs 5,373 crore has been approved for these 87,834 applicants, Rs 2,428 crore has already been disbursed to 31,000 of these MSMEs in the last 15 days, the release said.

Earlier on May 30, Rupani chaired a virtual meeting through video conferencing facility with bank officials and industry representatives to discuss ways to help MSME units hit by the lockdown.

As per a rough estimate, Gujarat has around 33 lakh MSME units providing employment to 1.5 crore people, said the release.

Honouring Rupani's appeal, nationalised banks disbursed Rs 2,428 crore in the last 15 days, the release said, adding that some private banks have also come forward to provide loans to the MSME units.