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ECGLS helps push MSME loan growth as of end Sept: Report


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The emergency credit line guarantee scheme (ECGLS) has helped in the credit growth for small businesses, aiding an index of growth in loans for the crucial sector ending a notch higher at the end of the September quarter.
However, because of the special asset quality recognition dispensations like the moratoriums, recast and then the Supreme Court decided standstill, the strength index for the MSMEs (micro, small and medium enterprises) will get clearer in the next few months, Transunion CIBIL and Sidbi, who prepare the index, said.
The latest MSME Credit Health Index indicates that credit growth has accelerated, as the overall growth index inched up to 114 points, which is a three-point increase from 111 in June. The overall Strength Index also improved to 89 from 83 over the same period, the index prepared by the credit information company and the state-run financier said. ....

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