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Guaranteed credit under ECLGS 5.0 reaches Rs 1.55 lakh crore
Jul-08-2026

The Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 has witnessed strong traction since its rollout, with 4,11,497 guarantees issued and the guaranteed amount touching Rs 1,55,229 crore, underscoring its widespread adoption across the financial sector. According to the Ministry of Finance, 98% of all guarantees issued (by number) have benefited MSMEs, while 82% of the total guaranteed amount is also towards MSMEs. The results from ECLGS 5.0 reflect the government's continued commitment to building a resilient, responsive credit ecosystem.

In order to maximise awareness and adoption, the Department of Financial Services (DFS) has led a structured outreach campaign across the country. The phase 1 is completed during the period of May 20, 2026 to June 06, 2026 across nine locations, conducted through State Level Bankers' Committees (SLBCs) with active participation from the National Credit Guarantee Trustee Company (NCGTC), PSB Alliance, banks, industry associations, and enterprises. Further, the phase 2 is currently underway at 10 locations, of which 4 have been completed.

Meanwhile, the ECLGS 5.0, approved by the Union Cabinet on May 5, 2026, is delivering fast, large-scale liquidity support to businesses affected by the West Asia geopolitical situation. The scheme is designed to provide risk mitigation for lending institutions to provide additional credit to borrowers, thereby helping businesses to tide over cash-flow disruptions and sustain operations. By extending 100% guarantee coverage to additional loans of MSMEs and 90% to other business segments, the scheme has allowed financial institutions to lend more confidently, ensuring liquidity reaches the needy sectors.


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