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ISSN 2063-5346
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The Impact of COVID-19 on the Average Loan Size of SMEs Finance with Respect to Bangalore, India.

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*Hussain ALsameer,**1Dr. Salma Begum
» doi: 10.48047/ecb/2023.12.10.844

Abstract

A study aimed to explore the rate of changes in the average loan size provided to SMEs during and before the Coronavirus pandemic in bangalore, during the period from 3/1/2019 to 25/4/2021. A study was conducted by collecting the average loan size granted to clients of MFIs for the period from 3/1/2019 to 29/1/2020 before the outbreak of the Coronavirus in India and for the period from 30/1/2020 to 25/4/2021 after the outbreak of the epidemic in India. The study adopted the descriptive approach, and quantitative data were collected. In line with the nature of the study, the event study method was employed. Descriptive and inferential statistics were employed to find out and analyze the relationship between the variables. The results of the regression analysis showed that there was a negative impact of Coronavirus (Covid-19) on the average loan size in the long term at a significance level of 0.05, as the Corona epidemic led to a decrease in the average loan size by Rs 31,829.56 in the long term comparative the case before outbreak of the Coronavirus, indicates that there are other factors affecting the loan size other than the Corona epidemic (Covid-19) that were not included in the estimated model, and the diagnostic tests showed that the estimated model is functionally appropriate.

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