The government's Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 has received a strong early response, with loan applications worth nearly Rs 25,000 crore already being submitted, sources told NDTV Profit. Around 22,000 applications have been recorded so far, people in the know added.
The scheme, which has been introduced to support businesses impacted by disruptions linked to the West Asia crisis, aims to ensure uninterrupted credit flow to stressed and recovering sectors. Overall, ECLGS 5.0 is expected to facilitate additional credit support of up to Rs 2.55 lakh crore.
Interestingly, no loan applications have been received from the aviation sector so far, despite its eligibility under the scheme. This is notable as the aviation segment has been allocated Rs 5,000 crore under ECLGS 5.0, specifically to cushion the impact of fuel price volatility and operational disruptions.
ALSO READ: SEBI Makes Nomination Easier For Demat, Mutual Fund Investors
The scheme remains open to eligible borrowers across sectors until March 31, 2027, providing a long runway for credit uptake as business conditions evolve.
ECLGS 5.0 offers 100% guarantee coverage for MSMEs, while non-MSME borrowers are eligible for 90% guarantee support. The structure is designed to encourage lending to smaller businesses that are often more vulnerable to liquidity stress during periods of economic uncertainty.
The scheme has been positioned as a targeted intervention to support sectors facing external shocks, particularly those linked to supply chain disruptions and geopolitical tensions affecting fuel and commodity prices.
While aviation has not yet tapped into the facility, broader participation from other industries indicates steady credit demand in the economy.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.