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Private sector banks (PvSBs) and public sector banks (PSBs) accounted for 44.5 per cent and 43.6 per cent, respectively, of the loans disbursed under the Emergency Credit Line Guarantee Scheme (ECLGS), according to a TransUnion CIBIL report.
However, the number of applications processed by PSBs were 1.6 times that of PvSBs.
NBFCs and others accounted for 10.3 per cent and 1.60 per cent, respectively, of the disbursed amount.
The average ticket size (ATS) of loans ECLGS was ₹6.04 lakh for PvSBs; ₹3.59 lakh for PSBs; ₹ 2.42 lakh for NBFCs; and ₹ 73,000 for others.
ECLGS was launched in 2020 in the wake of the outbreak of the Covid-19 pandemic to provide additional liquidity to MSMEs with reduced cost of funds.
Also read: RBI view: Economic activity in a few sectors below pre-pandemic levels
TransUnion CIBIL noted that ECLGS data received accounted for ₹1.70-lakh crore in disbursement till March 2021 as part of ECLGS 1.0 and 2.0. Out of these, a sample of ₹1.45 lakh crore in disbursed loans were sampled for its analysis.
Of the total number of borrowers who availed loans under the ECLGS, 58.5 per cent belong to the very small category (overall credit exposure less than ₹10 lakhs) and 31.70 per cent belong to the micro category (overall credit exposure between ₹10 lakh and ₹1 crore).
Small (₹1-10 crore) and medium (₹ 10-25 crore) category of borrowers account for 8.7 per cent and 1.1 per cent of the total number of borrowers.
Sector distribution of ECLGS 1.0 and 2.0 loans show a high distribution for retail & wholesale traders (39 per cent), and services industries (35.8 per cent).
The report said more than 50 per cent of the borrowers who availed of the facility had made 2 or more enquiries in the last 12 months. This indicates that borrowers who availed of the facility had a higher need for credit even before the pandemic.
The percentage of eligible borrowers who availed of ECLGS loans, or availed rate (for example, of the total number of eligible borrowers in a particular segment, say micro MSME, what percentage availed of the facility), is much higher for borrowers who missed at least 1 in 3 payments as compared to borrowers who did not miss any payment in the past 12 months as of February 2020.
The report said the performance of loans extended under ECLGS seems to better.
NPA rate
Borrower-level non-performing asset (NPA) rate as of March 2021, is at 6 per cent for borrowers who have availed ECLGS facility compared to 7.5 per cent for those who did not.
Further, only 2 per cent of the ECLGS loans extended have been reported by lenders as NPA or 90+ days past due as of March 2021.
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