Shortfalls in revenue, decline in demand, production shortfalls, surge in raw material prices and stretched payment cycles were among the worst after-effects that plagued industries post the lockdown of 2020. To meet overhead costs and other operating expenditures, several industries, particularly, MSMEs availed emergency credit to battle the disruptions caused due to the pandemic.

Clearly, the number of loans sanctioned under emergency credit line guarantee scheme (ECLGS) surged by a whopping 140% in a year, according to the latest report by State Level Bankers Committee (SLBC).

The 170th SLBC meeting was held earlier this week, during which the report was released. It states that the number of industries seeking loans under ECLGS surged from 1.5 lakh in the first quarter of 2021-22 to 3.6 lakh in the corresponding quarter this year. During the same period, the amount of loans sanctioned too surged from Rs 7,480.29 crore to Rs 23,424 crore.
The cumulative disbursals at the end of the first quarter of 2021-22 stood at Rs 20,434 crore inGujaratunder ECLGS.