Emergency Credit Line Guarantee Scheme (ECLGS) 5.0

Emergency Credit Line Guarantee Scheme (ECLGS) 5.0


Government of India, through the National Credit Guarantee Trustee Company Ltd. (NCGTC), has introduced the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 with the objective of providing additional liquidity support to eligible borrowers affected by the prevailing West Asia crisis and the resultant economic disruptions.

Name of the Facility

Emergency Credit Line Guarantee Scheme (ECLGS) 5.0

Scheme validity

NCGTC guarantee would be applicable to loans sanctioned under the scheme during the period from the date of issue of these guidelines up to 31.03.2027 or till guarantees for an amount of Rs.2,55,000 crore are issued, whichever is earlier. The credit facilities to be released in tranches of Rs 1,05,000 Crore (including Rs 5000 crore airline sector). Subsequent tranches up to overall limit of Rs 2,55,000 crore to be released based on assessing the situation as they arise.

Purpose

To provide critical support to eligible borrower by extending additional credit facilities. This will help borrower to tide over any short-term liquidity mismatches in view of West Asia crisis.

Eligibility

a) MSMEs/Non MSMEs (except Airline sector)

  • All business enterprises including MSMEs having fund based working capital limits from the Member Lending Institutions (MLIs) as on 31.03.2026.
  • The borrower’s credit facilities should be categorized as ‘standard’ (excluding SMA-2) as on 31.03.2026.
  • Borrowers who have availed additional credit facility under Credit Guarantee Scheme for Exporters (CGSE) are not eligible under the extant scheme upto the limit already availed under CGSE.
  • Non-MSMEs in below sectors, will be excluded from the purview of the Scheme: -

i.         Non-Banking Financial Companies

ii.       Power (Generation, transmission and distribution)

iii.     Telecom

iv.     Sugar & Ethanol

v.       Information Technology

vi.     Paper & Paper products

vii.    Educational Institutions

viii.  Beverages (excluding Tea and Coffee) and Tobacco

b) For Airline Sector (For the purpose of the scheme, to be read as scheduled passenger airline sector)

  • Business enterprises in the scheduled airlines sector having outstanding credit facilities (fund based and non-fund based both) from the Member Lending Institutions (MLIs) as on 31.03.2026.
  • The borrower’s credit facilities should be categorized as ‘standard’ (excluding SMA-2) as on 31.03.2026.

Quantum of Finance

MSMEs/Non MSMEs (except Airline sector): Up to 20% of the peak fund-based working capital outstanding during the fourth quarter of FY 2025–26. (i.e between 01.01.2026 and 31.03.2026 both days inclusive) subject to maximum of Rs. 100 crore per borrower across all banks in the form of WCTL.

 

Airline sector: Up to 100% of the total peak credit outstanding (fund-based and non-fund based) during the fourth quarter of FY 2025–26. (i.e between 01.01.2026 and 31.03.2026 both days inclusive) subject to maximum of Rs. 1,500 crore per borrower across all banks (Of this, any amount beyond ₹1,000 crore and Up to ₹1,500 crore shall be permitted only with a proportionate equity contribution from the promoters/owners).

Tenor of loan

For MSMEs/Non MSMEs (except Airline sector): 5 years from the date of first disbursement including moratorium of 1 year

 

For Airline sector:

WCTL: 7 years from the date of first disbursement including moratorium of 2 years.

Non Fund: 7 years from the date of first disbursement

Interest Rate

Linked to Repo/ MCLR

Security

Charge on existing securities (primary as well as collateral) and on assets created out of the loan under ECLGS 5.0, within 90 days from the date of first disbursement.

 

No additional collateral for additional credit extended under this scheme. For Airline sector, additional security is stipulated if ECLGS 5.0 loan exceeding ₹500 crore,

Processing fee/ Pre-payment penalty             

Nil

NCGTC guarantee fee

Nil

NCGTC Guidelines

Please visit

NCGTC Website