New Delhi: The Emergency Line Line Guarantee Scheme (ECLGS) launched by the government in the middle of the Covid Pandemic has helped 13.5 lakh UMKM units, saved 1.5 crore jobs and prevented 14% of MSME loans began to become NAS, research by SBI Research has shown.
“We estimate that almost 13.5 Lakh MSME accounts are saved due to the ECLG scheme (including restructured): Nearly 93.7% of these accounts are in the micro and small category.
In the absolute term, the MSME loan account worth 1.8 lakh crore is saved from Slipping.
To the NPA during the period.
This is equivalent to 14% of MSME loans circulating rescued from being NPA, “Soumya Kanti Ghosh, Head of the Economic Advisory Group, Bank State of India (SBI), said in the report.
According to SBI analysis, if these units have changed, then 1.5 crore workers will become unemployed.
The ECLG scheme saves livelihoods for 6 crore families (assuming four family members per worker including him), according to the report.
The trade sector (including a small Kirana store) most benefited, followed by processing food, textiles, and commercial realty.
Among America, Gujarat has been the biggest beneficiary, followed by Maharashtra, Tamil Nadu and Uttar Pradesh.
The top 10 states accounted for around 75% of the payable amount that did not enter the NPA (bad loan).
On May 2020, the center launched an ECLG scheme for the MSME sector.
SBI reports say the most profitable private companies, followed by ownership companies.
Referring to the third covid wave, the SBI report said this new variant was more transmitting.
However, research has so far indicated that the omicron variant is currently less severe than the Delta and Economic variants will escape without injury from this.