Business
Representative Image
Incentives provided by the Centre's Emergency Credit Line Guarantee Scheme (ECLGS) has helped in boosting credit flow to micro, small and medium enterprises (MSMEs), with at least 14.6 lakh MSME accounts being saved due the scheme, according to a SBI Research report.
"In absolute terms, MSME loan accounts worth Rs 2.2 lakh crore improved since inception of ECLGS for entire banking industry. This means that around 12 per cent of the outstanding MSME credit has been saved from slipping into NPA because of the ECLG scheme," the report said.
Outstanding loans to MSMEs increased from Rs 16 lakh crore in the financial year 2019-20 to Rs 18 lakh crore in financial year 2020-21 and Rs 20 lakh crore in financial year 2021-22, according to the report.
"Of 14.6 lakh MSMEs accounts that are saved due to ECLG scheme, almost 93.8 per cent were in Micro and Small category," the report said.
As per the SBI analysis, if such units slipped into NPA, then 1.65 crore workers would have become unemployed. Thus, the scheme saved the livelihood for 6.6 crores (assuming four family members per worker including herself/himself), it added.
The ECLG scheme was launched in May 2020 by the Centre in view of the Covid-19 crisis. The scheme was launched as part of Aatmanirbhar Bharat Abhiyaan to support eligible Micro, Small and Medium Enterprises (MSMEs) and business enterprises in meeting their operational liabilities and restarting their businesses.
Support Swarajya's 50 Ground Reports Project & Sponsor A Story
Every general election Swarajya does a 50 ground reports project.
Aimed only at serious readers and those who appreciate the nuances of political undercurrents, the project provides a sense of India's electoral landscape. As you know, these reports are produced after considerable investment of travel, time and effort on the ground.
This time too we've kicked off the project in style and have covered over 30 constituencies already. If you're someone who appreciates such work and have enjoyed our coverage please consider sponsoring a ground report for just Rs 2999 to Rs 19,999 - it goes a long way in helping us produce more quality reportage.
You can also back this project by becoming a subscriber for as little as Rs 999 - so do click on this links and choose a plan that suits you and back us.
Click below to contribute.
Latest