SBI Research has reported that ‘demand for credit is still continuing’. In FY23, credit growth has recorded a 3-year high of 14% (YoY). The credit growth in MSME sector was worth Rs 52,800 crores by mid-July in the current fiscal, as compared to Rs 61,000 crore in the same period last year. According to Chief Economic Advisor (CEA) V Anantha Nageswaran, banks are doing well in providing credit to the MSME sector.
The Reserve Bank of India’s sector-wise credit data highlights that gross bank credit set out for Micro and Small Enterprises (MSEs) has grown by 27% in May, as against 19.7% in April. The overall disbursement by banks stood at Rs 14.23 lakh crore in May 2022, increasing from Rs 11.20 lakh crore in May 2021. The overall credit extended to the MSME sector in May was Rs 17.81 lakh crore vis-a-vis Rs 17.63 lakh crore set out in April and Rs 16.17 lakh crore in March.
Under the government’s Emergency Credit Line Guarantee Scheme (ECLGS) initiated in May 2020, 1,18,41,981 MSMEs and other businesses were supported as of March 2022 with fully guaranteed collateral-free loans.
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