Key facts
- Over 100,000 guarantees have been issued under the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0.
The Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 has issued over 100,000 guarantees totaling Rs 48,484 crore since its approval on May 5, 2026. The scheme aims to provide Rs 2.55 lakh crore in additional credit to existing borrowers.
The substantial issuance of guarantees under ECLGS 5.0 indicates a robust effort to provide liquidity support to businesses, particularly MSMEs, amidst economic challenges, signaling potential stabilization and recovery for these vital sectors.
The Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 has seen significant uptake since its approval on May 5, 2026, with over 100,000 guarantees issued totaling Rs 48,484 crore as of June 9, 2026. The scheme's objective is to provide an additional Rs 2.55 lakh crore in credit to existing borrowers to mitigate liquidity challenges. The finance ministry highlighted that 96% of the guarantees, both in terms of number and value, were directed towards the MSME sector, underscoring its focus on supporting small and medium-sized enterprises. Public sector banks have played a crucial role, accounting for 96% of the guarantees issued, which has facilitated the scheme's rapid acceptance and credit extension to sectors most in need. The scheme offers 100% guarantee coverage to MSMEs and 90% to non-MSMEs, encouraging financial institutions to lend aggressively.