Credit guarantee scheme aided Rs 13.5 lakh MSMEs: Study

NEW DELHI: The emergency credit line guarantee scheme (ECLGS) launched by the government amid the Covid pandemic has helped 13.5 lakh MSME units, saved 1.5 crore jobs and prevented 14% of MSME loans from turning into NPAs, a study by SBI Research has shown.
“We estimate almost 13.5 lakh MSME accounts were saved due to the ECLG scheme (including restructured): Almost 93.7% of such accounts are in the micro and small category. In absolute terms, MSME loan accounts worth Rs 1.8 lakh crore were saved from slipping into NPA during the period. This is equivalent to 14% of the outstanding MSME credit being saved from becoming NPA,” Soumya Kanti Ghosh, group chief economic adviser, State Bank of India (SBI), said in the report.

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According to SBI’s analysis, if these units had turned non-performing, then 1.5 crore workers would have become unemployed. The ECLG scheme saved the livelihood for 6…

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