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  • Financial Express

ECLGS: 5.4% of MSME loans turn NPA; govt says it is reasonable

Govt’s flagship credit scheme for MSMEs: The Emergency Credit Line Guarantee Scheme (ECLGS), which was launched post-Covid for emergency credit to MSMEs and was valid till March this year, has recorded non-performing assets (NPAs) amounting to Rs 13,233 crore as of June 30, 2023.

According to the data shared by Bhagwat Karad, Minister of State in the Finance Ministry in a written reply to a question in the Lok Sabha on July 24, the bad loans constituted 5.45 per cent of the total MSME loan amount of Rs 2.42 lakh crore guaranteed under ECLGS, as per data from the National Credit Guarantee Trustee Company (NCGTC). NCGTC was the guarantee provider to member lending institutions including banks and NBFCs with respect to the credit given to borrowers on their loan outstanding as of February 29, 2020, under ECLGS.

Read more at Financial Express

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