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ECLGS 5.0

Government of India, through the Ministry of Finance, Department of Financial Services, has introduced the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0. This scheme provides credit guarantee coverage of 100% for MSMEs and 90% for non¬-MSMEs as well as the airline sector, to Member Lending Institutions (MLIs) including Scheduled Urban Cooperative Banks for the default amount under additional credit facilities extended to eligible borrowers to tide over any short-term liquidity mismatches in view of West Asia crisis. The Scheme shall be managed by National Credit Guarantee Trustee Company Limited (NCGTC), a wholly owned company of Department of Financial Services (DFS), Ministry of Finance, Government of India, as a Trustee.

Following are the salient features of ECLGS 5.0 scheme as introduced by the Government of India/ NCGTC :–

Type of Facility

For MSME/Non-MSMEs (except Airline Sector):

  • Working Capital Term Loan Facility
Purpose & End Use
  • The Scheme has been formulated as a targeted policy response to the exceptional circumstances arising from the West Asia crisis. It seeks to extend critical support to borrowers by providing additional working capital term loan for business purposes, thereby enabling them to navigate the prevailing economic challenges more effectively.
Duration of Scheme
  • The Scheme would be applicable to all loans sanctioned during the period from the date of issue of these guidelines by NCGTC upto 31.03.2027 or till guarantees for an amount of Rs.2,55,000 crore are issued, whichever is earlier.
Maximum Loan amount/ Exposure Cap

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)
  • Maximum Loan Amount: ₹100 crore per borrower
Repayment Period

For MSMEs/Non MSMEs (except Airline sector):

  • 5 years from the date of first disbursement including moratorium of 1 year
Rate of Interest
  • 9.00% (PLR-8.85%) p.a. with a cap of 9% p.a. For NBFCs: ROI shall not exceed 13% p.a.
Security & Charge
  • The facility sanctioned under the Scheme shall rank second charge with the existing credit facilities (primary and collateral) and charge on assets created out of the loan under ECLGS 5.0.
Easy Documentation
Eligibility
  • All business enterprises having fund based working capital limits from the Bank as on 31.03.2026.
  • The borrower’s credit facilities should be categorized as ‘standard’ (excluding SMA-2) as on 31.03.2026 with our Bank as well as across all other lenders.
  • The borrower should not be NPA across all lenders as on date of sanction and / disbursement of loan under the scheme.
Who can apply?

Existing MSME borrower & non-MSME borrower (excluding the sectors mentioned below) including Airline Sector List of sectors under non-MSME segment excluded:

  • Non-Banking Financial Companies
  • Power (Generation, transmission and distribution)
  • Telecom
  • Sugar & Ethanol
  • Information Technology
  • Paper & Paper products
  • Educational Institutions
  • Beverages (excluding Tea and Coffee) and Tobacco