- The ECLGS 5.0 scheme has secured Rs 1.55 lakh crore in credit guarantees shortly after launch
- The scheme supports MSMEs and other businesses with 90-100% government-backed loan guarantees
- Over 4.11 lakh guarantees have been issued, with MSMEs receiving 98% by number and 82% by value
The Centre's Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 has witnessed robust early uptake, with the value of government-backed credit guarantees surpassing Rs1.55 lakh crore within weeks of its launch, reflecting strong demand for the liquidity support initiative, according to the Finance Ministry.
Approved by the Union Cabinet on May 5, 2026, ECLGS 5.0 was launched to provide emergency liquidity assistance to businesses affected by the geopolitical tensions in West Asia, helping them manage cash flow disruptions and sustain operations.
The scheme offers a 100% government guarantee on additional loans extended to micro, small and medium enterprises (MSMEs), while other eligible business segments receive a 90% guarantee, encouraging lenders to extend fresh credit.
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Since its launch, lenders have issued 4,11,497 guarantees under ECLGS 5.0, covering a guaranteed amount of Rs 1,55,229 crore.
The ministry said the numbers reflect the rapid adoption of the scheme across the banking and financial ecosystem. MSMEs remain the biggest beneficiaries of the programme.
Around 98% of all guarantees issued by number have been extended to MSMEs, while these enterprises account for nearly 82% of the total guaranteed amount, underlining the scheme's focus on supporting small businesses facing liquidity pressures.
To improve awareness and implementation, the Department of Financial Services has launched a nationwide outreach campaign in coordination with State Level Bankers' Committees, the National Credit Guarantee Trustee Company, public sector banks, industry associations and lending institutions.
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The first phase of the campaign, conducted between May 20 and June 6 across nine locations, has been completed.
The second phase is currently underway across 10 locations, with four programmes already concluded.
The government said the initiative is aimed at ensuring eligible businesses can access timely credit and maintain operations amid external economic challenges.
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