&w=1200&q=75)
ECLGS 5.0 Sees Over ₹1.71 Lakh Crore in Applications Amid Liquidity Crisis
ECLGS 5.0 sees strong demand, applications cross Rs 1.71 lakh cr
Image: Asianet Newsable
The Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 has gained significant traction, with applications exceeding ₹1.71 lakh crore as of May 29, 2026. The scheme, aimed at supporting businesses facing liquidity issues due to the West Asia crisis, has particularly benefited Micro, Small and Medium Enterprises (MSMEs).
- 01Over 2.62 lakh applications have been submitted under ECLGS 5.0, reflecting strong demand.
- 02MSMEs have submitted applications worth approximately ₹1,31,107 crore, receiving sanctions of nearly ₹30,355 crore.
- 03The scheme provides 100% credit guarantee coverage for MSMEs and 90% for non-MSMEs and scheduled passenger airlines.
- 04ECLGS 5.0 was approved by the Union Cabinet on May 5, 2026, to address liquidity stress caused by the West Asia crisis.
- 05Since its launch, guarantees have been issued for over 26,000 accounts, amounting to around ₹15,720 crore.
Advertisement
In-Article Ad
The Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, approved by the Union Cabinet on May 5, 2026, has experienced a robust response shortly after its launch. As of May 29, 2026, the scheme has received over 2.62 lakh applications, totaling approximately ₹1.71 lakh crore. Nearly 79,950 applications have been sanctioned, leading to approvals worth around ₹35,194 crore. The Micro, Small and Medium Enterprises (MSMEs) sector is a significant contributor, with applications amounting to ₹1,31,107 crore and sanctions of nearly ₹30,355 crore. The scheme aims to provide additional credit support to businesses facing liquidity challenges due to the ongoing crisis in West Asia. Under ECLGS 5.0, the National Credit Guarantee Trustee Company Limited (NCGTC) offers credit guarantees, ensuring 100% coverage for MSMEs and 90% for other eligible entities. This initiative is a continuation of the ECLGS launched in 2020 to support businesses affected by economic disruptions.
Advertisement
In-Article Ad
The ECLGS 5.0 scheme is expected to provide crucial liquidity support to businesses, particularly MSMEs, helping them navigate financial challenges and maintain operations.
Advertisement
In-Article Ad
Reader Poll
Do you think the ECLGS 5.0 will effectively support businesses facing liquidity issues?
Connecting to poll...
Read the original article
Visit the source for the complete story.