non performing assets (NPAs) are higher in the services and infrastructure sectors, which are largely driven by Covid such as their connectivity and
Credit information company report on movement of people Transunion Cibil Told.
The government had launched the scheme to help lenders tide over the challenges posed by the pandemic by providing 100 per cent guarantees so that they can provide credit facilities to businesses. It has been expanded and extended till March 2023, and now has an outlay of Rs 5 lakh crore.
The report said that the scheme has been successful in helping Indian businesses tide over the economic crisis caused by COVID-19 at a time when the entire country was under lockdown.
“Overall, the NPA rate of borrowers availing ECLGS stands at 4.8 per cent as of March 2022,” the report, which is based on data provided by ECLGS, said. National Credit Guarantee Trustee CompanyTold.
“The timely infusion provided through ECLGS has greatly helped in the revival of businesses across geographies as well as helped in controlling NPAs in MSME loans. A reduction of 4.8 per cent for borrowers availing ECLGS facility. The NPA rate is lower as compared to those borrowers who were eligible but did not avail this facility (6.1 per cent), “Managing Director and Chief Executive Officer of the company” Rajesh Kumar Told.
It added that the merchants segment has the largest share of more than 20 per cent in the disbursement amount, and the NPAs in the segment are 4.15 per cent, while the services segment, which accounts for 19.2 per cent, have NPAs at 8.51 per cent. Infrastructure accounts for only 1.4 per cent of disbursements and NPAs are 5.20 per cent.
Maharashtra The largest share of the quantum of loans taken under the scheme at 13.6 per cent, is followed by Tamil Nadu At 11.3 per cent, the report said, when it comes to the rate receivable, which is the total number of institutions receiving loans among eligible people, Uttar Pradesh Tops the list.
State-owned lenders have disbursed 42.8 per cent of loans with an average ticket size of Rs 3.4 lakh, while their private sector peers have disbursed 43.1 per cent of ECLGS loans with an average ticket size of Rs 7.5 lakh.