'ECLGS saved 13.5 lakh MSMEs, 1.5 crore jobs'

Top Stories

»	Sensex, Nifty slide 1 pc as Hormuz deadline by US rattles markets
»	Sensex, Nifty extend rally for 3rd day on hopes of US-Iran de-escalation
»	CAIT urges govt to implement credit relief, input cost stabilisation measures amid Iran war
»	RBI MPC meet begins, status quo on policy rate likely amid West Asia tensions
»	Govt launches programme to train scientists in Governance under Mission Karmayogi

SME Times News Bureau | 06 Jan, 2022
The Centre's Emergency Credit Line Guarantee Scheme (ECLGS) has saved almost 13.5 lakh MSMEs worth Rs 1.8 lakh crore from slipping into non-performing assets (NPA), SBI Research said in a report on Thursday.

"In absolute terms, MSME loan accounts worth Rs 1.8 lakh crore were saved from slipping into NPA during the period," the report said.

"This is equivalent to 14 per cent of the outstanding MSME credit being saved from becoming NPA."

In May 2020, the Centre launched the ECLGS scheme for the MSME sector to provide relief to the sector amidst the pandemic. Of the 13.5 lakh beneficiaries, over 93 per cent were those in micro and small segments, the report said.

As per the report, 48 per cent of the borrowers belong to the 'Micro' category and nearly 46 per cent are the 'Small' borrowers. The rest six per cent belong to the 'Medium' category.

"As per our analysis, if these units had turned non-performing, then 1.5 crore workers would have become unemployed. In effect, the ECLG scheme saved the livelihood of six crore families (assuming four family members per worker including himself/herself)," the report said.

Small kirana shops have benefitted the most, followed by food processing, textiles and commercial real estate, the report added.

Amongst the states, Gujarat has been the biggest beneficiary, followed by Maharashtra, Tamil Nadu and Uttar Pradesh, it added.