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What is the story about?
The Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 has received a record 2.62 lakh applications seeking credit support worth ₹1.71 lakh crore, Department of Financial Services (DFS) official said on Monday.
According to the official, only borrowers classified as Special Mention Account-2 (SMA2) have been kept out of the scheme, while eligible customers continue to avail of the government-backed credit facility.
So far, 79,959 applications have been sanctioned under ECLGS 5.0, translating into a credit flow of more than ₹35,000 crore. The sanctioned amount represents about 13.72% of the total guaranteed amount of ₹2.55 lakh crore available under the scheme.
The government guarantee attached to the sanctioned loans has reached approximately ₹1,570 crore till date, the official said.
“We have already reached a good number. It is expected that customers will be able to take benefit of the scheme,” the official added, indicating confidence that credit uptake will continue to rise in the coming months.
The strong response underscores continued demand for guaranteed credit support among eligible borrowers, with application volumes touching record levels under the latest version of the ECLGS programme.
The DFS official said that the pace of credit offtake under ECLGS 5.0 has been "quite rapid" as the scheme was implemented quickly.
The official added that the March quarter was good for the banking sector and that the government has not seen any reports indicating an increase in stress among banks or a rise in MSME NPAs due to the ongoing West Asia crisis.
Earlier on May 5, 2026, the Union Cabinet has approved Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 , aimed at expanding credit support to businesses amid emerging external risks, including the ongoing West Asia crisis.
The proposed framework is expected to extend credit guarantee support across a wider set of sectors, marking a broader coverage compared with earlier iterations of the scheme that were largely targeted at specific stressed segments during the pandemic period.
The scheme targets a total additional credit flow of ₹2,55,000 crore, including ₹5,000 crore earmarked for the airline sector. It offers 100% guarantee coverage for MSMEs and 90% for non-MSMEs and airlines, with support aimed at addressing liquidity stress arising from the West Asia situation.
Eligible borrowers include MSMEs, non-MSMEs and scheduled passenger airlines with standard accounts as of March 31, 2026.
Also Read: May Auto Sales: Royal Enfield sales rise 15% to cross 1 lakh units
According to the official, only borrowers classified as Special Mention Account-2 (SMA2) have been kept out of the scheme, while eligible customers continue to avail of the government-backed credit facility.
So far, 79,959 applications have been sanctioned under ECLGS 5.0, translating into a credit flow of more than ₹35,000 crore. The sanctioned amount represents about 13.72% of the total guaranteed amount of ₹2.55 lakh crore available under the scheme.
The government guarantee attached to the sanctioned loans has reached approximately ₹1,570 crore till date, the official said.
“We have already reached a good number. It is expected that customers will be able to take benefit of the scheme,” the official added, indicating confidence that credit uptake will continue to rise in the coming months.
The strong response underscores continued demand for guaranteed credit support among eligible borrowers, with application volumes touching record levels under the latest version of the ECLGS programme.
The DFS official said that the pace of credit offtake under ECLGS 5.0 has been "quite rapid" as the scheme was implemented quickly.
The official added that the March quarter was good for the banking sector and that the government has not seen any reports indicating an increase in stress among banks or a rise in MSME NPAs due to the ongoing West Asia crisis.
Earlier on May 5, 2026, the Union Cabinet has approved Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 , aimed at expanding credit support to businesses amid emerging external risks, including the ongoing West Asia crisis.
The proposed framework is expected to extend credit guarantee support across a wider set of sectors, marking a broader coverage compared with earlier iterations of the scheme that were largely targeted at specific stressed segments during the pandemic period.
The scheme targets a total additional credit flow of ₹2,55,000 crore, including ₹5,000 crore earmarked for the airline sector. It offers 100% guarantee coverage for MSMEs and 90% for non-MSMEs and airlines, with support aimed at addressing liquidity stress arising from the West Asia situation.
Eligible borrowers include MSMEs, non-MSMEs and scheduled passenger airlines with standard accounts as of March 31, 2026.
Also Read: May Auto Sales: Royal Enfield sales rise 15% to cross 1 lakh units
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