Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 All Details, Eligibility, Guidelines PDF

The Government of India has launched Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 to help businesses navigate short-term liquidity challenges caused by the West Asia conflict. It provides government-backed, zero-guarantee-fee credit up to ₹100 crore for MSMEs and ₹1,500 crore for the airline sector.

The Scheme shall be managed by National Credit Guarantee Trustee Company Limited (NCGTC), a wholly owned company of Department of Financial Services (DFS), Ministry of Finance, Government of India, as a Trustee.

This loan is provided by banks without any collateral security. No fresh collateral/personal/corporate guarantee shall be sought for credit facility under the Scheme for MSME/Non-MSMEs (except Airlines Sector). Moreover, there is no fees for this loan. NCGTC will not charge any guarantee fee under the Scheme.

Duration of ECLGS 5.0 Scheme

The Scheme would be applicable to all loans sanctioned during the period from the date of issue of these guidelines by NCGTC up to 31.03.2027 or till guarantees for an amount of Rs.2,55,000 crore are issued, whichever is earlier. The credit facilities to be released in tranches of Rs 1,05,000 Crore (including Rs 5000 crore airline sector).Subsequent tranches up to overall limit of Rs 2,55,000 crore to be released based on assessing the situation as they arise.

Eligibility for ECLGS

MSMEs/Non MSMEs (except Airline sector)

• All business enterprises including MSMEs having fund based working capital limits from the Member Lending Institutions (MLIs) as on 31.03.2026.
• The borrower’s credit facilities should be categorized as ‘standard’ (excluding SMA-2) as on 31.03.2026.
• 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.
• Non-MSMEs in the sectors, as per list placed at Annexure-A, will be excluded from the purview of the Scheme.

For 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.
• The borrower’s credit facilities should be categorized as ‘standard’ (excluding SMA-2) as on 31.03.2026.

Loan Amount under ECLGS

1. Quantum of Support

MSMEs/Non MSMEs (except Airline sector)

• Up to 20% of the peak fund-based working capital outstanding during the fourth quarter of FY 2025–26. (i.e. between 01.01.2026 and 31.03.2026 both days inclusive)

Peak Fund-based working capital refers to the highest level of working capital usage by the borrower during Q4 FY 2025–26. This acts as the benchmark for calculating eligible additional funding.

Airline Sector

• Up to 100% of the total peak credit outstanding (fund-based and non-fund based) during the fourth quarter of FY 2025–26. (i.e. between 01.01.2026 and 31.03.2026 both days inclusive)

2. Maximum Loan Amount:

• MSMEs/Non MSMEs (except Airline sector): ₹100 crore per borrower
• Airline sector: ₹1,500 crore per borrower (Of this, any amount beyond ₹1,000 crore and Up to ₹1,500 crore shall be permitted only with a proportionate equity contribution from the promoters/owners)

3. Guarantee Cover

• 100% on Amount in Default for MSMEs
• 90% on Amount in Default for non-MSMEs as well as Airline sector

4. Interest Rate of Credit under the Scheme

For MSMEs/Non MSMEs (except Airline sector)

• Banks/FIs: MSMEs – EBLR+0.75%; Non-MSMEs – MCLR+0.75% with a cap of 9% p.a. (For MSMEs, if the bank uses any other nomenclature instead of EBLR for lending to MSMEs or any other standard or uniform benchmark as per their internal policy for pricing of MSMEs as per RBI guidelines, the same can be used as the benchmark for deciding the applicable interest rate).
• NBFCs: ROI shall not exceed 13% p.a.

For Airline sector:

• To be decided as per the board approved policy of the lending institution.

5. Interest servicing

• To be serviced as and when due including during moratorium period.
• Airline sector: Up to 50% of the estimated interest amount of moratorium period can be earmarked from the proposed additional ECLGS facility towards FITL.

6. Guarantee Fee- Nil.

7. Tenor of Loan

• For MSMEs/Non MSMEs (except Airline sector): 5 years from the date of first disbursement including moratorium of 1 year
• For Airline sector: 7 years from the date of first disbursement including moratorium of 2 years.

Security of ECGLS 5.0

The facility sanctioned under the Scheme shall rank second charge with the existing credit facilities (primary and collateral) and the MLIs shall ensure to create charge on existing securities (primary as well as collateral) and on assets created out the loan under ECLGS 5.0, within 90 days from the date of first disbursement.

Is there any Processing Fees and Penalty for ECLGS 5.0?

Since additional credit is to be provided to existing customers, no processing fee shall be charged by lenders for ECLGS facility. No pre-payment penalty should be charged on early repayment of the loan under the Scheme.

Download ECLGS 5.0 Letter to Banks

Download ECLGS 5.0 Guidelines

Download MLI Registration Undertaking Format ECLGS 5.0

ECLGS 5.0 FAQs

List of Banks for ECLGS 5.0