The Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 has crossed the 1-lakh-guarantee milestone, with a total of 1,06,549 guarantees issued, according to official data released by the Press Information Bureau on Wednesday.
Under the scheme, guarantees worth Rs 48,484 crore have been extended, with the MSMEs accounting for the bulk of the uptake. Micro, small and medium enterprises have received nearly 96% of the guarantees by number, and account for around 86% of the total guaranteed amount under the scheme.
Public sector banks account for 96% of all guarantees issued, underscoring their dominant role in implementation. The scheme offers full guarantee coverage for MSMEs, while non-MSME borrowers are eligible for a 90% guarantee on sanctioned loans.
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According to the government, ECLGS 5.0 is designed to facilitate additional credit flow of up to Rs 2.55 lakh crore to stressed and eligible borrowers. The scheme is also aimed at addressing liquidity challenges arising from the West Asia crisis, which has impacted global trade and financial flows.
As part of outreach efforts, awareness programmes have been conducted across nine locations to boost uptake among eligible borrowers. A Phase-II outreach programme is currently under active consideration to further expand coverage and deepen penetration of the scheme.
Officials said the initiative continues to play a critical role in sustaining credit availability for small businesses while strengthening financial resilience in the post pandemic and uncertain geopolitical environment. They added that the strong participation of public sector banks and MSMEs reflects growing confidence in the guarantee backed credit framework of the scheme aimed at supporting economic recovery and job creation across sectors.
The report reads that the implementation remains robust and inclusive nationwide.
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