Emergency Credit Line Guarantee Scheme (ECLGS) 5.0: Rs 18,100 Crore Outlay

Key facts

• The Union Cabinet approved the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 with an outlay of Rs 18,100 crore to address short-term liquidity mismatches caused by the West Asia Crisis.
• Eligible borrowers include Micro, Small and Medium Enterprises (MSMEs), non-MSMEs with existing working capital limits, and scheduled passenger airlines with outstanding credit facilities as of March 31, 2026.
• The National Credit Guarantee Trustee Company Limited (NCGTC) will provide fee-free guarantee coverage of 100% for MSMEs and 90% for non-MSMEs and the airline sector.
• MSMEs and non-MSMEs can avail additional credit up to 20% of peak working capital utilised during the fourth quarter of FY26 (capped at Rs 100 crore), while airlines can avail up to 100% additional credit (capped at Rs 1,500 crore).
• The loan tenure is five years with a one-year moratorium for MSMEs and non-MSMEs, and seven years with a two-year moratorium for airlines.