Rs 35,194 crore sanctioned under Credit Guarantee Scheme

Manoj Muttathil Ayyappan, Joint Secretary, Department of Financial Services, said Rs 35,194 crore has been sanctioned and Rs 15,720 crore worth of guarantees have been issued under the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0

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The scheme was launched on 5 May 2026. The objective of the scheme is to ensure the availability of sufficient liquidity to businesses, particularly MSMEs as well as the non-MSME sector.

The scheme aims to provide credit guarantee coverage of 100% for MSMEs and 90% for non-MSMEs as well as airline sector, to Member Lending Institutions (MLIs) by National Credit Guarantee Trustee Company Limited (NCGTC) for the amount in default under the additional credit facility extended to the eligible borrowers to tide over any short-term liquidity mismatches in view of West Asia Crisis.

 The scheme targets total additional credit flow of Rs 2,55,000 crore (including Rs 5,000 crore for airlines) for extending additional credit support to eligible business borrowers.

Under the scheme, 2.62 lakh applications, representing Rs 1.71 lakh crore have been sourced as on 29 May.

For more details read here: https://www.pib.gov.in/PressReleaseDetail.aspx?PRID=2267611&reg=3&lang=1

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