Business EconomyPosted at: Jun 10 2026 7:09PM

ECLGS 5.0 guarantees cross 1 lakh mark, covers over Rs 48,000 Cr in credit protection

New Delhi, June 10 (UNI) The Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 has crossed a significant milestone, with the total number of guarantees issued under the scheme surpassing the 1 lakh mark as of June 9, 2026.
According to official data, a total of 1,06,549 guarantees have been issued under ECLGS 5.0, covering a total guaranteed amount of Rs 48,484.26 crore. The scale of coverage highlights the government's efforts to strengthen credit flow and provide financial support to businesses impacted by liquidity challenges arising from the West Asia crisis.
The scheme, approved by the union Cabinet on May 5, 2026, has seen strong participation from the Micro, Small and Medium Enterprises (MSME) sector, which accounts for 96% of the guarantees issued by number and 86percent of the total guaranteed amount.
Public Sector Banks (PSBs) have played a major role in driving adoption of the scheme, accounting for 96percent of total guarantees issued, helping ensure faster credit access for eligible borrowers.
Under ECLGS 5.0, lenders receive 100percent guarantee coverage for MSME borrowers and 90percent coverage for non-MSME sectors, encouraging financial institutions to extend credit support more aggressively. The scheme aims to provide an additional Rs 2.55 lakh crore of credit to existing borrowers to help businesses navigate liquidity pressures.
The government said wide institutional participation has contributed to the scheme's rapid acceptance. The programme has brought together a network of lenders, including Public Sector Banks, Private Sector Banks, Regional Rural Banks (RRBs), Small Finance Banks (SFBs), and Non-Banking Financial Companies (NBFCs), ensuring broader geographical and sectoral coverage.
Member Lending Institutions (MLIs) have also undertaken customer outreach through digital and direct communication channels, including websites, emails, and SMS campaigns, to increase awareness and access to scheme benefits.
Additionally, the Department of Financial Services (DFS) conducted outreach programmes at nine locations through State Level Bank Committees (SLBCs), with participation from the National Credit Guarantee Trustee Company (NCGTC), PSB Alliance, state MSME departments, industry associations, banks, and enterprises. A second phase of outreach initiatives is also under consideration.
The government said the milestone reflects ECLGS 5.0's role as a key instrument in maintaining financial stability and ensuring continued credit availability for businesses. UNI VK SAS

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Tags: #ECLGS 5.0 guarantees cross 1 lakh mark # covers over Rs 48 #000 Cr in credit protection

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