ECLGS 5.0 Crosses Major Milestone, 6.74 Lakh Guarantees Issued For Loans Worth Over ₹2.5 Lakh Crore

New Delhi: The government-backed Emergency Credit Line Guarantee Scheme (ECLGS 5.0) has issued 6,73,979 guarantees covering more than Rs 2.5 lakh crore, highlighting the programme’s reach among businesses seeking additional credit support.

According to an official factsheet, the total guaranteed amount under the scheme has reached Rs 2,50,024 crore.

MSMEs Take Lion’s Share

Micro, Small and Medium Enterprises (MSMEs) accounted for 97.3% of the total guarantees issued by number. They also represented 80.79% of the overall guaranteed value.

Implemented by the National Credit Guarantee Trustee Company (NCGTC), ECLGS 5.0 provides government-backed credit guarantees to lending institutions for extending additional working capital to eligible borrowers affected by external disruptions.

Apart from MSMEs, the scheme covers eligible non-MSME businesses and scheduled passenger airlines.

Rs 2.55 Lakh Crore Credit Target

ECLGS 5.0 aims to facilitate additional credit flow of up to Rs 2.55 lakh crore.

The scheme will remain operational until March 31, 2027, or until guarantees worth Rs 2.55 lakh crore are issued, whichever comes first.

Credit is available through scheduled commercial banks, scheduled urban cooperative banks, financial institutions and eligible NBFCs, subject to prescribed eligibility and lending norms.

Government Steps Up Outreach

The government is expanding awareness campaigns to bring more eligible borrowers under the MSME credit guarantee scheme.

Outreach programmes were conducted at nine locations between May 20 and June 6, while campaigns across 10 additional locations are underway.

Digital access through the Jan Samarth Portal, along with participation from banks and NBFCs, is also helping expand the scheme’s reach.