Banks Sanction ₹35,000 Crore Loans Under Emergency Credit Line Guarantee Scheme (ECLGS) for MSMEs and Airlines

Key facts

• Lenders have cleared approximately 80,000 applications with loans amounting to ₹35,194 crore and issued guarantees worth ₹15,720 crore as of May 29.
• The Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, with an outlay of ₹18,100 crore, provides liquidity to Micro, Small and Medium Enterprises (MSMEs) and airlines impacted by the West Asia crisis.
• National Credit Guarantee Trustee Company Limited (NCGTC) provides 100 per cent credit guarantee coverage for MSMEs and 90 per cent for non-MSMEs under the additional credit facility.
• Passenger airlines are eligible for up to 100 per cent of peak credit up to ₹1,500 crore, while other institutions can access up to 20 per cent of fund-based working capital up to ₹100 crore.
• The loan tenor for the airline sector is seven years with a two-year moratorium, while MSMEs and non-MSMEs have a five-year tenor including a one-year moratorium.