The Government of India approved the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 on 5th May 2026 to provide targeted credit support to businesses affected by external economic disruptions and geopolitical developments. Implemented by the National Credit Guarantee Trustee Company (NCGTC), the scheme offers government-backed guarantees to Member Lending Institutions (MLIs) for extending additional working capital, with a total guarantee commitment of ₹2.55 lakh crore. The scheme is operational until 31 March 2027 or until the full guarantee amount is utilized.
ECLGS 5.0 covers MSMEs across all sectors, eligible non-MSME business borrowers, and scheduled passenger airline companies. Borrowers must have existing working capital facilities as of 31 March 2026 with loan repayments not overdue by more than 60 days. Several sectors are excluded from non-MSME coverage including NBFCs, power generation/transmission/distribution, telecom service providers, sugar and ethanol, information technology companies, paper products, educational institutions, and beverages (excluding tea and coffee) and tobacco.
The scheme provides 100% guarantee coverage for loans to eligible MSMEs and 90% coverage for eligible non-MSMEs and scheduled passenger airlines. No guarantee fee is payable by MLIs. For MSMEs and non-MSMEs, additional credit is provided up to 20% of the peak fund-based working capital outstanding during Q4 FY 2025-26, subject to a ceiling of ₹100 crore per borrower. Interest rates are capped at 9% per annum for banks (EBLR/MCLR + 0.75%) and 13% for NBFCs, with a 5-year tenure including 1-year moratorium.
For scheduled passenger airlines, eligibility requires standard credit facilities (excluding SMA-2) as of 31 March 2026. Additional credit support goes up to 100% with a ceiling of ₹1,500 crore per borrower, with amounts beyond ₹1,000 crore requiring proportionate equity contribution from promoters. Loans have a 7-year tenure including 2-year moratorium, with interest rates determined by MLIs' board-approved policies.
As of 20 August 2026, the scheme has issued 6,73,979 guarantees amounting to ₹2,50,024 crore, representing rapid adoption across the lending ecosystem. MSMEs account for 97.3% of all guarantees by number and 80.79% of the total guaranteed amount. The scheme is accessible through the Jan Samarth Portal, with extensive outreach campaigns conducted across 19 locations through State Level Bankers' Committees involving NCGTC, PSB Alliance, banks, and industry associations.
The scheme builds on previous ECLGS phases (1.0-4.0) that issued 1.19 crore guarantees worth ₹3.68 lakh crore between 2020-2023, concluding on 31 March 2023. ECLGS 5.0 aims to strengthen business resilience, preserve employment, maintain supply chains, and sustain India's economic growth momentum during periods of global uncertainty.