The Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, approved by the Union Cabinet on 5th May 2026, has issued 4,11,497 guarantees with a total guaranteed amount of ₹1,55,229 crore as part of the government's response to the West Asia geopolitical situation. The scheme provides 100% guarantee coverage for additional loans to MSMEs and 90% coverage for other business segments, enabling financial institutions to extend credit more confidently to businesses experiencing cash-flow disruptions.
MSMEs have been the primary beneficiaries, receiving 98% of all guarantees by number and 82% of the total guaranteed amount by value. The Department of Financial Services has conducted a structured nationwide outreach campaign, with Phase 1 completed across nine locations from 20.05.2026 to 06.06.2026 through State Level Bankers' Committees, and Phase 2 currently underway at 10 locations with four already completed. These outreach programs involve the National Credit Guarantee Trustee Company (NCGTC), PSB Alliance, banks, industry associations, and enterprises to ensure eligible borrowers can access the scheme's benefits.