Small business credit of ₹2.32 lakh crore is at the highest risk of default, and micro enterprises having loan outstanding of less than ₹10 lakh are the most vulnerable because of the Covid-19 pandemic, a credit information company said on Wednesday. It can be noted that ever since the outbreak of the virus infections and the subsequent lockdown that is scheduled to last at least 40 days, concerns are being raised about the financial health of small businesses. In its study, TransUnion Cibil said, at present, the total outstanding amount of all financiers to small businesses having a credit outstanding of less than ₹50 crore is ₹17.94 lakh crore, representing 28 per cent of the total outstanding credit. The ongoing Covid-19 pandemic poses new challenges to businesses, especially for micro enterprises, who are often more vulnerable to sudden changes in the economic environment, its managing director and chief executive Rajesh Kumar said.

(Business Line)