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The Emergency Credit Line Guarantee Scheme (ECLGS) saw a 75% drop in beneficiary count from 95.41 lakh during its launch year (May 2020-March 2021) to 23 lakh beneficiaries during FY22, according to data shared by Minister of State for Finance Bhagwat Karad in the Lok Sabha. (Image: pixabay)
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“The drop in the beneficiary count indicates that as economic recovery started to happen, MSMEs also recovered. If the banks are unable to sanction the entire Rs 5 lakh crore scheme’s cover till March 2023, it would mean that the stress in the MSME sector, which was assumed to be extremely high, wasn’t that high,” said Anil Bhardwaj, Secretary General, FISME. (Image: pixabay)
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Launched in May 2020, ECLGS has benefitted around 1.19 crore businesses as of June 30, 2022, and sanctioned collateral-free loans amounting to Rs 3.48 lakh crore. (Image: pixabay)
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Out of the total ECLGS beneficiary count, 1.13 crore were MSMEs (95 per cent) while the amount sanctioned to MSMEs stood at Rs 2.32 lakh crore (66 per cent) out of the total sanctioned. (Image: pixabay)
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ECLGS provided 100% guarantee coverage from NCGTC to existing borrowers on the books of the banks. The scheme was launched with an initial admissible limit of the guarantee cover at Rs 3 lakh crore which was later enhanced to Rs 4.5 lakh crore and further to Rs 5 lakh crore in the 2022-23 budget announcement. (Image:pixabay)
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According to a report by SBI Research in January this year, ECLGS had saved 13.5 lakh MSME units, 1.5 crore jobs, and 14 per cent of outstanding MSME loans turning into non-performing assets. (Image: pexels)