ECLGS 5.0 crosses 1 lakh guarantees milestone; total guaranteed amount exceeds Rs 48,000 crore

The Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, approved by the Union Cabinet on 5 May 2026, has crossed an important milestone. As of 9 June 2026, the total number of guarantees issued under the scheme officially crossed one lakh, reaching 1,06,549, with the total amount of guarantees standing at Rs 48,484.26 crore. This reflects the extensive credit protection being extended to lenders. Of the total coverage, 96 per cent of guarantees by number and 86 per cent of the total guaranteed amount relate to the Micro, Small and Medium Enterprises (MSME) sector. Public Sector Banks account for 96 per cent of the guarantees issued, which has ensured rapid uptake of the scheme. By providing 100 per cent guarantee coverage to MSMEs and 90 per cent to non-MSME sectors, the scheme has incentivised financial institutions to lend aggressively, ensuring that liquidity reaches the sectors that need it most. ECLGS 5.0 aims to provide Rs 2,55,000 crore of additional credit to existing borrowers to address liquidity challenges arising from the West Asia crisis. Wide institutional participation, leveraging a diverse network of lenders including public and private sector banks, Regional Rural Banks, Small Finance Banks and NBFCs, has ensured broad geographical and sectoral reach. The Department of Financial Services (DFS) has also conducted outreach programmes at nine locations through SLBCs. The achievement underscores the Government's commitment to fostering an enabling credit environment and financial stability among businesses.