Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 is a government-backed credit guarantee scheme approved by the Union Cabinet

Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 is a government-backed credit guarantee scheme approved by the Union Cabinet

¨     Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 is a government-backed credit guarantee scheme approved by the Union Cabinet on 5 May 2026.

¨     The scheme is intended to support industries affected by the West Asia crisis, particularly Micro, Small and Medium Enterprises (MSMEs) and airlines.

¨     As of 29 May 2026, banks had sanctioned ₹35,194 crore in loans under the scheme.

¨     ECLGS 5.0 has a budget allocation of ₹18,100 crore.

¨     It aims to facilitate an additional credit flow of ₹2.55 lakh crore.

¨     The scheme includes a dedicated allocation of ₹5,000 crore for the airline sector.

¨     Eligible borrowers must have credit facilities classified as Standard Assets as of 31 March 2026.

¨     Borrowers categorized under Special Mention Account-2 (SMA-2) are not eligible for the scheme.

¨     The scheme will remain open for loan sanctions until 31 March 2027 or until the entire ₹2.55 lakh crore guarantee limit is exhausted, whichever occurs earlier.

¨     The application process under ECLGS 5.0 is fully digital.

¨     Applications can generally be processed and completed within 5–7 days.

¨     The issuance and management of guarantees under the scheme are handled by National Credit Guarantee Trustee Company Limited.