Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 Facilitates Rs 48,484 Crore in Loans

Key facts

• The Union Cabinet approved the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 on May 5, 2026, to provide credit support amid liquidity pressures from the West Asia crisis.
• As of June 9, 2026, the Ministry of Finance reported that 1,06,549 guarantees have been issued under ECLGS 5.0, covering loans worth Rs 48,484.26 crore.
• The scheme aims to facilitate additional credit of Rs 2.55 lakh crore to existing borrowers, with Micro, Small and Medium Enterprises (MSMEs) being the primary beneficiaries.
• Under the programme, MSME borrowers receive 100 per cent guarantee coverage, while non-MSME borrowers are eligible for 90 per cent coverage.
• Public Sector Banks (PSBs) accounted for 96 per cent of the guarantees issued, with participation from Regional Rural Banks (RRBs), Small Finance Banks (SFBs), and Non-Banking Financial Companies (NBFCs).