Business
Centre's ECLG Scheme Saved Around 12 Per Cent Of Outstanding MSME Credit From Slipping Into NPA: SBI Research
Swarajya Staff
Jan 23, 2023, 02:31 PM | Updated 02:31 PM IST
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
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.
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
Introducing ElectionsHQ + 50 Ground Reports Project
The 2024 elections might seem easy to guess, but there are some important questions that shouldn't be missed.
Do freebies still sway voters? Do people prioritise infrastructure when voting? How will Punjab vote?
The answers to these questions provide great insights into where we, as a country, are headed in the years to come.
Swarajya is starting a project with an aim to do 50 solid ground stories and a smart commentary service on WhatsApp, a one-of-a-kind. We'd love your support during this election season.
Click below to contribute.