Credit offtake from scheduled commercial banks to MSME sectors surge: CMIE
Offtake of credit from scheduled commercial banks to medium, micro and small industrial enterprises has zoomed-in in recent months on the back of the government’s emergency credit line guarantee scheme (ECLGS), the Centre for Monitoring Indian Economy said.
“The take-off is sudden and it is relatively big and the only set of enterprises to see an increase in bank loans are medium, micro, and small enterprises,” CMIE said in its weekly analysis.
According to CMIE, these enterprises have largely, or possibly almost entirely, benefited from the central government’s Emergency Credit Line Guarantee Scheme (ECLGS), launched in November 2020.
ECLGS loans are top-up loans to help existing business enterprises overcome their difficulties arising out of lockdowns and other pandemic-related ill-effects. The scope of the scheme was enhanced in November 2020, March 2021 and May 2021. Till November 2021, Rs 2.9 lakh crore was sanctioned under the scheme.
Citing the RBI data, CMIE said the net increase in outstanding bank lending to medium, micro and small enterprises between April 2020 and November 2021 was Rs 1.37 lakh crore.