The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 on May 6, 2026. The scheme provides a corpus of ₹18,100 crore to guarantee credit of up to ₹2.55 lakh crore for Micro, Small and Medium Enterprises (MSMEs) and non-MSME businesses, including the airline sector.
ECLGS 5.0 extends the credit guarantee coverage to businesses facing liquidity issues due to the COVID-19 pandemic and subsequent economic disruptions. The scheme aims to support employment and revive demand by ensuring easy access to collateral-free loans.
The airline sector, which has been severely impacted by the pandemic, will receive targeted support under this new tranche. The government expects the scheme to benefit a wide range of businesses, particularly those in the MSME segment, which are crucial for job creation and economic growth.
This is the fifth iteration of the ECLGS, which was first launched in May 2020 as part of the Atmanirbhar Bharat package. The scheme has been progressively expanded to cover more sectors and provide higher credit limits.
