Banks Sanction ₹35,194 Crore Under ECLGS 5.0

The Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 is a government credit guarantee scheme approved by the Union Cabinet on 5 May 2026 for industries affected by the West Asia crisis, including Micro, Small and Medium Enterprises (MSMEs) and airlines. Banks had sanctioned ₹35,194 crore in loans under the scheme by 29 May 2026.

Scheme Framework

ECLGS 5.0 has a budgetary outlay of ₹18,100 crore and is designed to facilitate additional credit flow of ₹2.55 lakh crore. The scheme includes a specific allocation of ₹5,000 crore for airlines.

Eligibility and Coverage

Borrowers eligible for ECLGS 5.0 must have credit facilities classified as Standard, excluding Special Mention Account-2, as of 31 March 2026. The scheme remains open for loan sanctions until 31 March 2027 or until guarantees for the full ₹2.55 lakh crore are issued, whichever occurs earlier.

Application and Implementation

The application process under ECLGS 5.0 is fully digital and can be completed end-to-end within five to seven days. The National Credit Guarantee Trustee Company Limited manages the guarantee issuance under the scheme.

Important Facts for Exams

• ECLGS stands for Emergency Credit Line Guarantee Scheme.
• The scheme is implemented through the National Credit Guarantee Trustee Company Limited.
• As of 29 May 2026, guarantees worth ₹15,720 crore had been issued under ECLGS 5.0.
• About 2.62 lakh applications, with a credit demand of ₹1.71 lakh crore, were received under the scheme by 29 May 2026.

Recent Disbursement Status

About 79,950 to 80,000 loan applications had been sanctioned under ECLGS 5.0 by 29 May 2026. Manoj Muttathil Ayyappan, Joint Secretary in the Department of Financial Services, stated on 1 June 2026 that the scheme had received strong traction since rollout.