Credit and finance for MSMEs: The authorities’s flagship credit aid scheme for MSMEs Emergency Credit Line Guarantee Scheme (ECLGS) has sanctioned 1.19 crore loans (borrowers) involving seventy one in step with cent or Rs three.Fifty eight lakh crore of the total scheme restrict of Rs five lakh crore while fifty seven consistent with cent or 2.Eighty five lakh crore loans had been distributed as of November 30, 2022. Out of the full sanctioned amount, 66 per cent has been extended to MSME borrowers while 95.17 in keeping with cent of loans sanctioned additionally belonged to MSMEs. The data became shared by way of the Minister of State in the finance ministry Bhagwat Karad in the Lok Sabha on Monday.
In terms of awful loans under ECLGS, the non-performing property (NPAs) as a percentage of loans assured changed into three.89 according to cent amounting to Rs 13,964.58 crore, according to the information stated from the National Credit Guarantee Trustee Company (NCGTC) which guarantees coverage to member lending establishments below ECLGS.
The scheme became launched in May 2020 as a part of Aatmanirbhar Bharat Abhiyaan to guide eligible MSMEs and different organizations in getting better put up-Covid. Banks were provided with a whole credit assure for loans given by them beneath the scheme to eligible MSMEs. The admissible assure limit below the scheme turned into increased from Rs 4.5 lakh crore to Rs 5 lakh crore earlier this year, with the extra guarantee cover of Rs 50,000 crore earmarked completely for the hospitality and associated organizations inclusive of the civil aviation quarter.
The scheme noticed 95.41 lakh beneficiaries in the course of its release year (May 2020-March 2021), indicating the variety of MSMEs impacted because of the pandemic in evaluation to 23 lakh beneficiaries for the duration of FY22, in keeping with records shared by using Karad in the Lok Sabha in July this 12 months.
“The drop inside the beneficiary remember in FY22 indicates that as monetary recuperation started out to show up with the Atmanirbhar package, MSMEs also recovered. Moreover, if the banks are unable to sanction the whole Rs five lakh crore scheme’s cover until March 2023, it’d imply that the strain inside the MSME sector, which changed into assumed to be extremely high, wasn’t that excessive or the recuperation inside the MSME sector has been faster than what one had concept,” Anil Bhardwaj, Secretary General, Federation of Indian Micro & Small & Medium Enterprises (FISME) had told FE Aspire.