Emergency Credit Line Guarantee Scheme 5.0 (ECLGS 5.0), implemented by the National Credit Guarantee Trustee Company (NCGTC), has issued 673,979 guarantees covering a guaranteed amount of Rs 2,500.24 billion (bn). Micro, small and medium enterprises (MSMEs) accounted for 97.3 per cent of guarantees by number and 80.79 per cent of the total value. The factsheet indicated that the scheme is targeting additional credit flow and expanding outreach to eligible borrowers.

ECLGS 5.0 provides targeted credit guarantees to Member Lending Institutions (MLIs) to enable additional working capital for borrowers affected by external disruptions. The scheme supports MSMEs, eligible non-MSME businesses and scheduled passenger airlines through government-backed guarantees and is operational until 31 March 2027 or until guarantees amounting to Rs 2,550 billion (bn) are issued, whichever is earlier. The scheme aims to facilitate an additional credit flow of up to Rs 2,550 billion (bn) under the existing limit.

Borrowers must meet eligibility conditions prescribed by NCGTC, including account status and other applicable lending norms, and credit assistance is provided through Scheduled Commercial Banks, Scheduled Urban Co-operative Banks, financial institutions and eligible non-banking financial companies. Outreach campaigns were conducted across nine locations between 20 May and 6 June 2026 through State Level Bankers' Committees, with participation from NCGTC, the PSB Alliance, banks, industry associations and enterprises. Outreach is continuing across 10 additional locations, of which four have already been completed, and MLIs continue to reach eligible borrowers through multiple communication channels.

Building on earlier phases introduced during the COVID-19 pandemic, the scheme is intended to strengthen access to institutional credit while supporting business continuity and resilience. Digital access through the Jan Samarth portal and active participation by banks and financial institutions have expanded reach and simplified processes for borrowers. The government is promoting awareness to maximise the scheme’s reach and ensure broad geographical and sectoral coverage.