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ECLGS Saved 13.5 Lakh MSMEs and 1.5 Crore Jobs: SBI Research

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

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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.

“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.

SMEStreet Edit Desk

SMEStreet Edit Desk is a small group of excited and motivated journalists and editors who are committed to building MSME ecosystem through valuable information and knowledge spread.

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