The percentage of Non-Performing Assets (NPAs) of loan accounts under the ECLGS stood at ₹13,964.58 crore, or 3.89% of the loan guaranteed, Parliament was informed on Monday.
Replying to a question, Minister of State for Finance Bhagwat Karad said the Emergency Credit Line Guarantee Scheme (ECLGS) introduced in May 2020 as part of Aatmanirbhar Bharat Abhiyaan, had benefited 1.19 crore borrowers with guarantee amounting to ₹3.58 lakh crore as on November 30, 2022.
Under the scheme, 100% credit guarantee is extended to the lending institutions for loans extended by them under the scheme to eligible borrowers. The admissible guarantee limit under the scheme has been increased from ₹4.5 lakh crore to ₹5 lakh crore, with the additional guarantee cover of ₹50,000 crore earmarked exclusively for the hospitality and related enterprises including the civil aviation sector.
Most of the MSME (micro, small and medium enterprise) borrowers have loans outstanding up to ₹50 crore, he said.
“For this category of borrowers, the ECLGS scheme was an ‘opt out’ scheme, i.e., eligible support was to be provided by the lenders to such category of eligible borrowers, unless the MSME borrowers decided not to avail the support or were ineligible,” he said.
For all the latest business News Click Here
