ECLGS 5.0 issues 6.73 lakh guarantees worth Rs 2.5 lakh crore

ECLGS 5.0 has issued 6,73,979 guarantees covering Rs 2,50,024 crore, with MSMEs accounting for 97.3 per cent by number. The government is expanding outreach to eligible borrowers as the scheme targets additional credit flow of up to Rs 2.55 lakh crore

New Delhi: Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 has issued 6,73,979 guarantees covering a guaranteed amount of Rs 2,50,024 crore, an official factsheet said on Saturday.

Micro, small and medium enterprises (MSME) accounted for 97.3 per cent of guarantees by number and 80.79 per cent of the total value.

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Emergency Credit Line Guarantee Scheme 5.0, implemented by the National Credit Guarantee Trustee Company, provides targeted credit guarantees to Member Lending Institutions to extend additional working capital to eligible borrowers affected by external disruptions.

It supports MSMEs, eligible non-MSME businesses and scheduled passenger airlines through government-backed guarantees.

The scheme aims to facilitate an additional credit flow of up to Rs 2.55 lakh crore.

Borrowers must satisfy the eligibility conditions prescribed by NCGTC, including account status and other applicable lending norms. Credit assistance is provided through Scheduled Commercial Banks, Scheduled Urban Co-operative Banks, Financial Institutions and eligible Non-Banking Financial Companies.

ECLGS 5.0 is operational until March 31, 2027, or until guarantees amounting to Rs 2.55 lakh crore are issued, whichever is earlier.

The government is actively promoting awareness to maximise the scheme’s reach. Outreach campaigns were conducted across 9 locations between 20 May and 6 June 2026. The campaigns were organised through State Level Bankers’ Committees (SLBCs). NCGTC, PSB Alliance, banks, industry associations and enterprises participated actively.

Outreach is continuing across 10 additional locations, with 4 already completed. A wide network of banks and NBFCs ensures broad geographical and sectoral coverage. MLIs continue to reach out to eligible borrowers through multiple communication channels.

Building on the earlier phases of ECLGS introduced during the COVID-19 pandemic, the scheme strengthens access to institutional credit while supporting business continuity. Extensive outreach, digital access through the Jan Samarth Portal and participation of banks and financial institutions have expanded its reach, the statement noted.