ECLGS funds have been disbursed
According to a Crisil report, banks have loaned 90% of the Rs 3 lakh crore under the emergency credit line guarantee scheme established last year to help small companies weather the pandemic.
On Monday, the government increased the size of the emergency credit line guarantee scheme (ECLGS) by Rs 1.5 lakh crore, which Crisil NSE -1.27 per cent believes will help banks deal with the probable impact of the pandemic’s second wave on asset quality. 
According to Crisil, disbursements under the present ECLGS have now reached Rs 2.69 lakh crore, or 89.7%, of the overall corpus of Rs 3 lakh crore, benefiting nearly 10% of the value of banking sector advances and over 60% of the value of advances to micro, small, and medium enterprises.
This, combined with additional measures such as a loan embargo and a loan resolution framework, has helped banks keep gross non-performing assets at 7.5 per cent in March 2021, compared to 8.2 per cent in March 2020, according to the agency.
Even micro, small, and medium enterprises, who were hit the hardest by the epidemic, saw gross NPAs rise by fewer than 100 basis points, according to the report.
Crisil said the Rs 7,500 crore credit guarantee scheme announced for loans given to microfinance institutions for on-lending will improve funding access for microlenders and ensure increased credit flow to their small borrowers, who were previously unable to borrow from other sources in the formal financial ecosystem.
Expanding ECLGS by Rs 1.5 lakh crore will give much-needed support to the economy’s most vulnerable segments, particularly small and mid-sized businesses, to help them weather the current crisis
