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What is the story about?
The Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 has crossed 4.11 lakh guarantees with the total guaranteed amount exceeding ₹1.55 lakh crore since its launch in May, according to the Ministry of Finance.
The scheme, approved by the Union Cabinet on May 5, 2026 , was introduced to provide additional credit support to businesses affected by the geopolitical situation in West Asia.
It offers a 100% government guarantee on additional loans extended to micro, small and medium enterprises (MSMEs) and a 90% guarantee for eligible borrowers in other business segments.
According to the Department of Financial Services (DFS), 4.11 lakh guarantees have been issued under ECLGS 5.0, covering a guaranteed amount of ₹1.5 lakh crore.
MSMEs have accounted for the bulk of the beneficiaries under the scheme. The ministry said 98% of the guarantees issued, by number, have gone to MSMEs, while these enterprises account for 82% of the total guaranteed amount sanctioned under the scheme.
The government said the scheme is aimed at helping businesses manage cash flow disruptions by enabling banks and other lending institutions to extend additional credit with sovereign-backed guarantees.
To improve awareness and implementation, the DFS has been conducting outreach programmes through State Level Bankers' Committees (SLBCs) in collaboration with the National Credit Guarantee Trustee Company (NCGTC), banks, industry associations and other stakeholders.
The first phase of the outreach drive was conducted between May 20 and June 6 across nine locations. The second phase is currently underway at 10 locations, with programmes completed at four locations so far, the ministry said.
The government said the outreach initiatives are intended to help eligible borrowers understand the scheme and facilitate smoother implementation by member lending institutions.
The scheme, approved by the Union Cabinet on May 5, 2026 , was introduced to provide additional credit support to businesses affected by the geopolitical situation in West Asia.
It offers a 100% government guarantee on additional loans extended to micro, small and medium enterprises (MSMEs) and a 90% guarantee for eligible borrowers in other business segments.
According to the Department of Financial Services (DFS), 4.11 lakh guarantees have been issued under ECLGS 5.0, covering a guaranteed amount of ₹1.5 lakh crore.
MSMEs have accounted for the bulk of the beneficiaries under the scheme. The ministry said 98% of the guarantees issued, by number, have gone to MSMEs, while these enterprises account for 82% of the total guaranteed amount sanctioned under the scheme.
The government said the scheme is aimed at helping businesses manage cash flow disruptions by enabling banks and other lending institutions to extend additional credit with sovereign-backed guarantees.
To improve awareness and implementation, the DFS has been conducting outreach programmes through State Level Bankers' Committees (SLBCs) in collaboration with the National Credit Guarantee Trustee Company (NCGTC), banks, industry associations and other stakeholders.
The first phase of the outreach drive was conducted between May 20 and June 6 across nine locations. The second phase is currently underway at 10 locations, with programmes completed at four locations so far, the ministry said.
The government said the outreach initiatives are intended to help eligible borrowers understand the scheme and facilitate smoother implementation by member lending institutions.
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