Emergency Credit Line Guarantee Scheme (ECLGS) 5.0

Government of India approves Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 to provide credit guarantee coverage for MSMEs and non-MSMEs as well as scheduled passenger airline under additional credit facility (Working Capital Term Loan) extended to the eligible borrowers to tide over any short-term liquidity mismatches in view of West Asia crisis.

Features

  • Eligible Borrowers: MSMEs, Non-MSMEs, and Scheduled Passenger Airlines with accounts categorized as “Standard” (Excluding SMA-2) accounts as on 31.03.2026. Borrower not to be NPA as on date of Sanction/Disbursement.
  • Eligible Loan Amount: Up to 20% of the peak fund-based working capital utilized during Q4 (Jan-Mar) of FY26.
  • Maximum Loan Quantum: ₹100 Crore per borrower (MSMEs & non-MSMEs), up to ₹1,500 Crore per borrower for Airlines.
  • ECLGS Guarantee Coverage: 100% for MSMEs and 90% for Non-MSMEs and Airlines.
  • Security: Create charge on assets created out of the loan under ECLGS 5.0 and Second charge on existing securities (primary as well as collateral) for the facility sanctioned under the Scheme within 90 days from the date of first disbursement. For the airline sector, additional security shall be obtained as mentioned in scheme guidelines.
  • Interest Rates: For MSMEs – EBLR+0.75%; Non-MSMEs – MCLR+0.75% with a maximum cap of 9% p.a.
  • Fee: Processing fee, Guarantee fees and Pre-payment penalty are Nil.
  • Tenure: The loan tenor is 5 years, including 1-year moratorium for MSMEs/Non MSMEs and 7 years including moratorium of 2 years for Airline Sector.
  • To apply please visit https://www.jansamarth.in/login.
  • Additional Scheme Information: For detailed scheme guidelines, visit the NCGTC official website.

NCGTC – For More Details:

https://www.ncgtc.in/en/product-details/ECLGS5/Emergency-Credit Line Guarantee Scheme (ECLGS) 5.0