ECLGS stopped 14% of loans from slipping into NPA, says SBI report

The Emergency Credit Line Guarantee Scheme (ECLGS) for micro, small, and medium enterprises (MSME), one of the government’s key planks in reviving economic activity, has prevented 1.35 million MSME accounts from going under, according to a report by State Bank of India released on Thursday.

The scheme has saved around 15 million jobs and stopped 14 per cent of outstanding MSME loans from turning into non-performing assets (NPAs), said the report authored by SBI’s Chief Economic Advisor Soumya Kanti Ghosh.

Since the launch of the scheme by Finance Minister Nirmala Sitharaman in May 2020, MSME loan accounts worth Rs 1.8 trillion in