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The center rescued 80 million families, all survived with one announcement

New Delhi: The ‘ubiquitous’ epidemic of Covid 19 has precipitated an financial disaster in India. In view of this, the Ministry of Finance introduced an enormous package deal of Rs 20 lakh crore. Micro, Small and Medium Enterprises (MSMEs) have been the toughest hit by the disaster. The Emergency Credit Line Assure Scheme (ECLGS) was unveiled as a part of a complete package deal of Rs 20 lakh crore to help them.

Beneath the ECLG challenge, provision was made to lend as much as Rs 50 crore to MSMEs and enterprise ventures. Along with the mortgage quantity, the federal government additionally offered 100% assure for added 20% mortgage. The challenge was prolonged to MUDRA debtors and personal debtors for enterprise functions in August 2020.

The scheme was prolonged to the well being sector along with the 26 sectors recognized by the Kamath Committee via EGCL 2.0 on 20 November. It was directed to succeed in out to the businesses which have greater than Rs 50 crore however lower than Rs 500 crore debt by March 21. The Middle has constantly expanded this scheme to cowl completely different industries, which has resulted in 4 expanded variations of the ECLG scheme to date.

Of the Rs 4.5 lakh crore allotted for MSMEs i.e. micro, small and medium enterprises, 74.4% or Rs 2.9 lakh crore has been sanctioned until November 21, 2021. Based on SBI’s analysis estimates, the ECLG scheme might save about 13.5 lakh MSME accounts value Rs 1.8 trillion from NPAs throughout this era. That is equal to 14% of the MSMI credit score allotted to the excellent MSME account which is being shielded from NPA.

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About 93.6% of the 13.5 lakh MSME accounts saved as a result of ECLG scheme are in micro and small models. Based on SBI’s analysis and calculations, these micro, small and medium enterprise models would develop into NPAs with none credit score assure help, and about 1.5 crore workers could be unemployed. In truth, the ECLG scheme has saved a livelihood for six.0 crore households.

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