Emergency Credit Line Guarantee Scheme 5.0 (ECLGS 5.0)

Purpose: 

1. To augment the working capital needs of borrowers, which have been impacted due to West Asia crisis.

2. To provide additional working capital support to eligible borrowers affected due to liquidity stress arising from West Asia crisis

Validity: The scheme has now been extended up to Mar 31, 2027 or on reaching the guarantee amount of INR 2.55 lakh crore by the Government of India, under the Emergency Credit Line Guarantee Scheme (ECLGS).

Nature of facility: 

Working Capital Term Loan

(The financial assistance provided as part of the Scheme is to be operated as a separate loan account.)

Eligible Borrowers:

MSMEs/Non MSMEs (except Airline sector):

1. All business enterprises including MSMEs having fund based working capital limits from the Member Lending Institutions (MLIs) as on 31.03.2026. For the purpose of calculating fund-based working capital outstanding, the credit facilities to be considered shall include Cash Credit (CC), Overdraft (OD), Working Capital Demand Loan (WCDL), Working Capital Term Loan (WCTL), etc.
2. The borrower’s credit facilities should be categorized as ‘standard’ (excluding SMA-2) as on 31.03.2026.
3. Borrowers who have availed additional credit facility under Credit Guarantee Scheme for Exporters (CGSE) are not eligible under the extant scheme upto the limit already availed under CGSE.
4. The scheme is only for existing borrowers on the books of the MLIs as on reference date i.e; March 31,2026.

Non-MSMEs in the sectors, as per list below, will be excluded from the purview of the Scheme:
1. Non-Banking Financial Companies
2. Power (Generation, transmission and distribution)
3. Telecom
4. Sugar & Ethanol
5. Information Technology
6. Paper & Paper products
7. Educational Institutions
8. Beverages (excluding Tea and Coffee) and Tobacco

For Airline Sector (For the purpose of the scheme, to be read as scheduled passenger airline sector)
• Business enterprises in the scheduled airlines sector having outstanding credit facilities (fund based and non-fund based both) from the Member Lending Institutions (MLIs) as on 31.03.2026.

Quantum of finance:

1. MSME/ Non MSMEs: Up to 20% of peak fund-based working capital outstanding during Q4 FY 2025-26 (i.e from 01.01.2026 to 31.03.2026)
2. Airline sector: Up to 100% of peak total credit outstanding (fund based and non-fund based) during Q4 FY 2025-26 (i.e from 01.01.2026 to 31.03.2026).

Maximum Cap on Loan amount: Rs.100 crore per borrower for MSMEs / Non-MSMEs and Rs.1,500 crore for Airline sector.

Guarantee Cover:

• 100% for MSME
• 90% for Non MSME and Airline sector

Interest rate: Maximum 9.00% p.a

Tenor: 

1. 5 years including moratorium of 1 year for MSMEs / Non-MSMEs.
2. 7 years including moratorium of 2 years for Airline sector.

Personal Guarantee: Nil

Legal Fees: Nil

Processing Charges: Nil

Prepayment Penalty: Nil

Security: Second charge to be created on existing securities (primary as well as collateral) and on assets created out the loan under ECLGS 5.0

For detailed guidelines and FAQs on ECLGS, https://www.ncgtc.in/en/product-details/ECLGS5/Emergency-Credit-Line-Guarantee-Scheme-(ECLGS)-5.0

Terms and Conditions apply