The scheme remains open for loan sanctions until March 31, 2027.

The government expects businesses to secure Rs 2 lakh crore under the ECLGS 5.0 facility this fiscal, as they seek emergency credit buffers to insulate themselves from West Asia disruptions.

The Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 has a guarantee cover of Rs 2.55 lakh crore and remains open for loan sanctions till March 31, 2027. Under ECLGS 5.0, banks and financial institutions can extend additional credit to borrowers backed by government guarantees.

“Many businesses want to keep a liquidity line available as a precaution. They may not draw down the entire amount immediately, but they want access to credit if the need arises,”

The programme, approved by the cabinet in May, seeks to provide additional credit support to businesses affected by disruptions linked to the West Asia conflict.

Under the programme, MSMEs receive a 100 percent government guarantee on eligible loans. Non-MSME borrowers and airlines are eligible for a 90 percent guarantee cover, which is provided through the National Credit Guarantee Trustee Company (NCGTC).