New Delhi, 6 Jan (KNN) In a recent research by SBI, it has been reported that the Emergency Credit Line Guarantee Scheme (ECLGS) has helped banks in averting 14 per cent of MSME loans from turning into NPAs.

It said, the state of Gujarat was the biggest beneficiary of the scheme followed by Maharashtra, Tamil Nadu and Uttar Pradesh.

These five states together accounted for 75% of the outstanding amount that did not slip into NPAs.

S K Ghosh, SBI's group chief economic advisor in the report stated, “In absolute terms, MSME loan accounts worth INR 1.8 lakh crore including INR 12,000 crore of restructured loans have improved since May 2020. This means that around 14% of the outstanding MSME credit (including 2% of restructured) has been saved from slipping into NPA because of the ECLG scheme.”

The micro enterprises constitute 48 per cent while the medium enterprises take up the remaining 6%, the report said.

It also analysed the impact NPAs had on workers, and indicated that if these units had turned nonperforming, then 1.5 crore workers would have become unemployed.

The report further claimed the ECLG scheme of saving the livelihood for 6.0 crore families assuming four family members per worker including the worker himself/herself.

Sectors such as trade has benefitted the most followed by food processing, textiles and commercial real estate, said the report.