81 per cent of eligible MSMEs in ECLGS are structurally strong: TransUnion CIBIL
New Delhi, Jul 4 (KNN) 81 per cent of eligible Micro, Small and Medium Enterprises (MSMEs) in Emergency Credit Line Guarantee Scheme (ECLGS) are structurally strong, said TransUnion CIBIL analysis.
Addressing a FICCI webinar on 'Financing Avenues for the MSME Sector', Rajesh Kumar, MD and CEO, TransUnion CIBIL on Friday asserted,'' According to the TransUnion CIBIL analysis, it is heartening to note that almost 81 per cent of eligible MSMEs in ECLGS are structurally strong. It is important that credit guarantee scheme reaches to deserving MSMEs.''
The MSME sector is the lifeline of the country and in the current pandemic situation, it is critical to find and fund MSMEs that are structurally strong to refuel Indian economy, he added.
Kumar further appreciated the scheme and said that ECLGS is a simple and enabling scheme that will benefit MSMEs.
Kumar also apprises members present in the webinar that in the COVID-19 scenario, TransUnion CIBIL is working towards helping and implementing the scheme.
''It is a good opportunity for strengthening our monitoring system for MSMEs. TransUnion CIBIL is reaching out to eligible borrowers and also monitoring portfolios of existing and new loans,'' he added.
Highlighting the objective and features of ECLGS, Kumar said that the scheme was launched by the Government of India for supporting MSMEs in the COVID-19 crisis. It will provide relief to the MSME sector by incentivizing Member Lending Institutions (MLIs) to provide additional credit of up to Rs 3 lakh crore at low cost, enabling MSMEs to remain in business.
The scheme will infuse liquidity in the MSME sector, providing 100 per cent government guaranteed loan for the period of 4 years including 12 months moratorium for principal amount and with a limit of 20 per cent of total outstanding of upto Rs 25 crore, he added.
Vipul Mahajan, Joint Vice President, Market Planner - Commercial Business, TransUnion CIBIL said that it is important to keep a watch on the signs of recovery to quickly align portfolio actions. The signs of recovery include, starting of credit repayments, controlling debt build-up, granting ECLGS support, CIBIL MSME Rank remaining intact in good range, beginning of business transactions and good promoter risk situation.
''MSME credit was going through a tough time pre-COVID but ECLGS has set the stage for boosting the MSME sector,'' he added.