The Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, approved by the Union Cabinet on 5 May 2026, has issued 4,11,497 guarantees with a guaranteed amount of over ₹1.55 lakh crore, providing timely liquidity support to businesses impacted by the West Asia geopolitical situation.

The scheme offers 100% guarantee coverage for additional loans to MSMEs and 90% coverage for other business segments, encouraging lending institutions to extend credit with reduced risk.

MSMEs remain the primary beneficiaries, accounting for 98% of the guarantees issued and 82% of the total guaranteed amount.

To enhance awareness and implementation, the Department of Financial Services (DFS) is conducting nationwide outreach through State Level Bankers’ Committees (SLBCs). The first phase has been completed across nine locations, while the second phase is currently underway.

ECLGS 5.0 continues to strengthen India’s credit ecosystem by improving access to finance and supporting businesses in managing liquidity challenges during external disruptions.