Emergency Credit Line Guarantee Scheme (ECLGS 5.0) Approved with ₹2.55 Lakh Crore Credit Flow

Key facts

• The Union Cabinet approved the fifth version of the Emergency Credit Line Guarantee Scheme (ECLGS 5.0) to provide financial support to businesses facing liquidity pressures due to the West Asia crisis.
• The scheme aims to facilitate a total additional credit flow of ₹2.55 lakh crore, which includes a specific earmark of ₹5,000 crore for the airline sector.
• Micro, Small and Medium Enterprises (MSMEs) will receive 100 per cent guarantee coverage on additional credit, while non-MSMEs and scheduled passenger airlines will be covered up to 90 per cent.
• Eligible borrowers include MSMEs and airlines with standard accounts as of March 31, 2026, with credit caps set at ₹100 crore for general borrowers and ₹1,500 crore for airlines.
• The loan tenure is fixed at five years for MSMEs and seven years for the airline sector, with the scheme remaining applicable for loans sanctioned until March 31, 2027.