BFSI - #SectorUpdates
The Emergency Credit Line Guarantee Scheme has been successful in helping Indian businesses navigate through the economic crisis caused by Covid-19 revealed in a recent report by credit bureau TransUnion Cibil. It catalyzed the revival of small businesses during and after the pandemic. The ECLGS scheme was launched in May 2020 to help businesses cope with the crisis induced by MSMEs. It has been expanded and extended until 31 March 2023 with an outlay of Rs 5 trillion and includes the recent addition of a further Rs 50,000 crore, made available to enterprises in hospitality and related sectors. The timely infusion provided through ECLGS has significantly helped in resurgence of businesses across geographies and at the same helped in controlling non-performing assets (NPAs) in MSME lending. The NPA rate of 4.8% for borrowers who availed ECLGS facility is lower than that of the borrowers who were eligible but did not avail the facility, at 6.1%.