ECLGS 5.0 Tops Rs 1.55 Lakh Crore, 98% Guarantees to MSMEs

The Union Cabinet-approved Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, launched after its approval on 5 May 2026, has issued 4,11,497 guarantees with a total guaranteed amount of ₹1,55,229 crore, according to the Department of Financial Services.

The scheme provides 100% guarantee coverage for additional loans to MSMEs and 90% guarantee coverage for other business segments. It was introduced to support businesses affected by the West Asia geopolitical situation by improving access to credit and easing cash-flow disruptions.

MSMEs remain the biggest beneficiaries under ECLGS 5.0. They account for 98% of all guarantees issued (by number) and 82% of the total guaranteed amount under the scheme.

To improve awareness and implementation, the Department of Financial Services (DFS) launched a nationwide outreach programme. Phase 1 was completed between 20 May 2026 and 6 June 2026 across nine locations through State Level Bankers’ Committees (SLBCs) with participation from NCGTC, PSB Alliance, banks, industry associations and enterprises.

Phase 2 is currently underway across 10 locations, with four locations completed so far. The outreach aims to help eligible borrowers access the scheme while supporting Member Lending Institutions (MLIs) in implementing ECLGS 5.0 effectively.