Emergency Credit Line Guarantee Scheme (ECLGS 5.0) for Industries
The Union Cabinet has approved the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0. Under this scheme, small industries (MSMEs) can avail loans up to ₹100 crore and airline companies up to ₹1,500 crore without collateral. The government, through the National Credit Guarantee Trustee Company Limited (NCGTC), will provide up to 100% credit guarantee cover to banks and financial institutions for these loans.
Union Minister Ashwini Vaishnaw stated on 5 May that this decision was taken to address the financial crisis arising from the ongoing US-Iran conflict. The scheme aims to help companies maintain business operations, save jobs, and strengthen supply chains. ECLGS 5.0 will be effective until 31 March 2027.
Due to rising jet fuel costs, the Federation of Indian Airlines (FIA) had requested relief from the government, which is accommodated under this scheme. A total of ₹2.55 lakh crore will be provided, with ₹5,000 crore reserved specifically for the airline sector. Loan limits differ by sector.
Loan Details for MSMEs and Other Businesses
- During Q4 FY2026, businesses can avail up to 20% of their working capital as additional loan.
- The maximum loan for MSMEs is ₹100 crore.
- Airline sector companies can avail up to 100% of working capital, with a maximum loan limit of ₹1,500 crore.