J&K Bank today said it has so far sanctioned Rs 862.46 Cr in favour of 22084 borrowers under the scheme tailored for the businesses including MSMEs adversely affected due to the ongoing COVID-19 crisis.
The scheme forms the major financial component of the Rs 20 lakh Cr ‘Atmanirbhar Bharat’ package recently announced by the central government.
The GECL scheme is available to all the eligible Business Enterprises/MSME borrowers having outstanding loans of up to Rs 25 Cr as on February 29, 2020 and annual turnover of up to Rs 100 Cr in FY 2019-20.The collateral free finance under the scheme is up to 20% of the outstanding loan as on 29th February, 2020; and is meant to meet operational liabilities build up, to buy raw material and to resume business activities and can be availed up to 31st October, 2020 or exhaustion of the Rs 3.00 lakh crore earmarked for the scheme.
CMD R K Chhibber said, “During the times of worldwide economic distress caused by the ongoing pandemic, the GECL scheme rolled out under Central Government’s Atmanirbhar Bharat Package is proving to be a win-win situation for all. Therefore, our entire focus remains on coverage of all eligible borrowers under GECL scheme so that our customers/businesses can avail the best available facilities amid these economically testing times. Till 16th of this month, 18931 borrowers have availed the facility and we have disbursed Rs 669.23 Cr under the said scheme.”
“Since, the scheme shall be available till October 31, 2020 or till Rs 3 lakh Cr are exhausted and works on the principle of ‘first come first serve’ basis, we are closely monitoring its progress on a regular basis at the Apex level to ensure that the entire process is completed in the most expeditious and hassle-free manner for the benefit of maximum customers”, he said, adding, “throughout the ongoing pandemic, we have kept all the essential banking services and facilities available to our customers as per their convenience. I once again appeal to all the eligible borrowers eligible to avail the finance under GECL scheme to come forward and benefit from the initiative under GECL scheme to avail the much required finances and resume their businesses at earliest. As a further enabler, more powers have been delegated to Zonal business heads under this scheme for speedy disposal of cases”
Notably, the GECL scheme was launched with lucid guidelines and supported by detailed FAQ’s for easy comprehension of all the concerned operative levels. Besides, all necessary processes associated with the scheme, including appraisal and documentation formats have been standardized/simplified and circulated across the operative levels for expediting the whole process.