Tuesday, February 7th, 2023

SBI report: Emergency loan guarantee saved 14.6 lakh small industries and livelihood of 6.6 crore people



code picture
– Photo: Social Media

Expansion

14.6 lakh MSMEs were saved due to the Emergency Credit Line Guarantee Scheme (ECLGS) launched by the government after Corona. If this plan was not there, these companies would have drowned or would have gone into bad debt i.e. NPA. This could have rendered 1.65 crore families jobless. This whole scheme saved the livelihood of a total of 6.6 crore people (if there are four members in each family).

This information has been given in a report released by SBI on Monday. Till September 30, 2022, a total of 2.82 lakh crore loans have been given under this scheme.

As per reports, the accounts of Micro, Small and Medium Enterprises (MSMEs) worth Rs 2.2 lakh crore improved during the same period due to the scheme. This means that 12% of the loans of this industry were saved from going into NPA. In 2020 government started Udyam portal for MSME where registration gives benefits.

The advantage of this is that while there are only 1.40 crore companies registered in GST in the country, there are 1.33 crore companies registered on this portal. There is clear evidence that MSME units are getting bigger with many units crossing the turnover threshold of 250 crores. At present there are 14 crore small scale industries in China and 6.4 crore MSME companies in India.

Major recommendations of the report…

Annual guarantee fee to be reduced to 0.50% of the loan amount in a phased manner across all slabs. MSMEs with turnover up to Rs 2 crore must be included in CGTMSE.

  • Abolish the tiered risk premium being charged from different banks based on specific delinquency levels.
  • Increase the maximum loan amount for coverage under CGTMSE from Rs.2 crore to Rs.5 crore for all activities manufacturing, service and trading sector.
  • To promote women entrepreneurship, the guarantee coverage for units with women promoters will be increased to 100%.

MSME debt reached 20 lakh crore in 2021-22

It has been said in the report that this sector is continuously getting loans from the banks. Where the total debt was Rs 12 lakh crore in 2015-16, it has crossed Rs 20 lakh crore in 2021-22. However, companies are now recovering from whatever damage was done to this sector in Corona. Especially sectors like textiles, transport, metal, edible oil, chemical, consumer durable have recovered.

According to the SBI report, there are hundreds of such companies in Uttar Pradesh, Uttarakhand, Bihar and Jammu and Kashmir, which were not affected by the corona of March 2020 and continued to get full loans. The maximum benefit of the scheme was received by the companies of Gujarat, followed by Maharashtra, Tamil Nadu and then Uttar Pradesh.

There are a total of 6.3 crore micro companies in the country while 3.3 lakh are small and 0.01 lakh medium companies. Out of this, there are 3.25 crore industries in villages and 3.09 crore in cities.

Source Link

Another revelation: Saw cut marks found on Shraddha’s bones, Aftab’s vandalism revealed in forensic investigation

Another new revelation has come to light in the Shraddha murder case that shocked the nation. After killing Shraddha, Aftab cut her body into pieces with a saw. This thing has come to the...

The girl cooked and ate a 6-feet ‘vicious’ creature, ate the meat with spiciness, then what happened….

Chinese Food Blogger Cooked and Ate White Shark: When it comes to Chinese food, thoughts start coming in our mind from dogs and cats to live fish and crabs. The food choice of the...

Trending News: Presswire18 News Top 10, big news of the night: read all the big news of the country and the world together

LIC Jeevan Akshay Policy: This scheme of LIC will make an income of 20 thousand rupees every month, investment will have to be done only once Apart from getting income every month under this...