Micro, Small and Medium Enterprises who have availed loans under emergency credit line Guarantee Scheme (ECLGS) has shown good repayment behavior and their bad debt ratio is below the industry average.

of banking sector NPA was at 5.9% at the end of March.

According to a report published by TransUnion CIBIL, the NPA rate is 4.8% for borrowers who availed the ECLGS facility, who were eligible but did not avail the facility (6.1%).

The study showed that repayment started in 38% of accounts within three months of availing the facility, and increased to 82% in one year.

The scheme has been successful in helping Indian businesses navigate through the economic crisis caused by COVID-19, and has helped in its revival MSME during and after the pandemic.

The TransUnion CIBIL study is based on ECLGS data provided by the National Credit Guarantee Trustee Company. The ECLGS scheme was launched in May 2020 and has been extended and extended till March 31, 2023 with an outlay of Rs 5 lakh crore. This recently includes an additional Rs 50,000 crore, which will be made available for enterprises in the hospitality and related sectors.