The government has sanctioned over Rs 35,000 crore in emergency credit under the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, aimed at supporting industries impacted by the ongoing crisis in West Asia.
Speaking to reporters in New Delhi, Manoj Muttathil Ayyappan, Joint Secretary in the Department of Financial Services (DFS), said the scheme has seen strong traction since its rollout.
As of May 29, the government had received 2.62 lakh applications under ECLGS 5.0, representing credit demand of Rs 1.71 lakh crore.
Of these, 79,950 applications amounting to Rs 35,194 crore have been sanctioned so far, while guarantees worth Rs 15,720 crore have already been issued.
Ayyappan said the government is closely monitoring implementation of the scheme to ensure timely processing of applications.
"We have already reached a good number. We expect customers to benefit from this," Ayyappan said.
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He added that the government is continuously reviewing the implementation process to ensure there are no delays. According to him, the scheme is fully digital and applications can be processed end-to-end within five to seven days.
"The scheme is made generally liberal, ensuring that maximum beneficiaries are able to avail the benefits. Only customers who are SMA-2 as of March 31, 2026, are kept outside the scheme," he said.
Ayyappan also said bl that outreach programmes are being conducted across the country to ensure wider awareness and maximise participation under the scheme.
ECLGS 5.0 carries a budgetary outlay of Rs 18,100 crore and is designed to support airlines, MSMEs and other businesses facing liquidity pressures due to disruptions arising from the West Asia crisis.
Under the scheme, passenger airlines are eligible for additional credit of up to 100% of their peak credit exposure, subject to a cap of Rs 1,500 crore. Other eligible institutions can avail up to 20% of their fund-based working capital limits, capped at Rs 100 crore.
The scheme's primary objective is to provide timely liquidity support, sustain business operations and prevent job losses. It is also expected to help maintain uninterrupted domestic production and strengthen the resilience of the broader economic ecosystem.
As per the framework, banks can extend additional credit of up to 20% over existing working capital limits. The scheme provides a sovereign-backed credit guarantee cover through the National Credit Guarantee Trustee Company Ltd. (NCGTC), covering 100% of the guaranteed amount for MSMEs and 90% for non-MSMEs in case of default.
The repayment tenor for airlines is seven years from the date of first disbursement, including a two-year moratorium period. For MSMEs and non-MSMEs, the tenor is five years, including a one-year moratorium.
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