ECLGS 5.0 crosses 4.11 lakh guarantees, extends Rs 1.55 lakh crore support to firms hit by West Asia crisis

The government's Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 has issued more than 4.11 lakh guarantees worth over Rs 1.55 lakh crore to businesses impacted by the West Asia geopolitical crisis, with micro, small and medium enterprises (MSMEs) accounting for the overwhelming majority of beneficiaries.

According to the Finance Ministry, the scheme has witnessed rapid adoption across the banking and lending ecosystem since its launch, with MSMEs receiving 98 per cent of the total guarantees issued and 82 per cent of the overall guaranteed amount.

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"Since launch, 4,11,497 guarantees have been issued under ECLGS 5.0, with the guaranteed amount reaching Rs 1,55,229 crore - a sign of the scheme's rapid absorption across the lending ecosystem," the ministry said in a statement.

The Union Cabinet approved ECLGS 5.0 on May 5, 2026, to provide additional liquidity support to businesses grappling with disruptions caused by the geopolitical situation in West Asia.

The scheme aims to facilitate additional credit of Rs 2.55 lakh crore to existing eligible borrowers, helping them address liquidity constraints arising from the regional crisis.

The ministry said the scheme is expected to play a bigger role as its reach expands.

"As the scheme evolves and outreach expands, it is expected to further strengthen liquidity support for businesses, including MSMEs and enable entrepreneurs to meet their liquidity needs in times of external challenges," it added.