MSME Loan Disbursals Rise 40% in FY21: SIDBI-TransUnion Cibil MSME Pulse Report

As per the report of Micro Small and Medium Enterprises (MSME) lender SIDBI (Smal Industries Development Bank of India) and Transunion-Cibil, MSME Pulse Edition Xll, The value of new loans disbursed to the MSME Sector in FY21 (COVID-19 period) was Increased by 40 percent to Rs 9.5 lakh crore, Higher than Rs 6.8 lakh crore in FY20 (pre-cOVID-19 period).
• It was mainly supported by the Emergency Credit Line Guarantee Scheme (ECLGS), the Government’s initiative under the AtmaNirbhar Bharat programme.
• Credit Growth: India’s total on-balance Sheet commercial lending exposure in March 2021 stood at Rs 74.36 lakh crores With a YOY (Year-on-Year) growth rate of 0.6 Percent in which, the MSME sector’s credit Exposure was about Rs 20.21 lakh crores With 6.6 percent YOY growth rate.
• NPA Rate: Due to the strong credit inflow, The NPA (Non-Performing Assets) rates of MSMEs in March 2021 was controlled at 12.5 percent compared with 12.6 percent in March 2020.
About Emergency Credit Line Guarantee Scheme (ECLGS): was launched by the Finance Ministry in May 2020 as a part of the Government’s ‘Atma Nirbhar to provide credit Rs 3 lakh crore Unsecured loans to COVID-19 hit MSMEs.
ii.Under ECLGS 3.0, the scope of ECLGS was extended to new sectors, such as hospitality, travel and tourism, and the lending under it was extended till September 30, 2021.
ii.Under ECLGS, 100 percent guarantee
coverage was provided by NCGTC (National Credit Guarantee Trustee Company) to public And private banks and NBFCs (Non-banking Finance Companies).

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