ECLGS Scheme 2026 guidelines are available to download in PDF format at financialservices.gov.in. The Emergency Credit Line Guarantee Scheme provides guarantee to banks and NBFCs so that they can extend credit facilities to business enterprises and MSMEs to meet their additional term loan and working capital requirements.
The latest version of the scheme, ECLGS 5.0, was launched on May 8, 2026, after the Union Cabinet approved it on May 5, 2026. It provides credit guarantee coverage of 100% for MSMEs and 90% for non-MSMEs as well as the airline sector to Member Lending Institutions through National Credit Guarantee Trustee Company Limited (NCGTC).
ECLGS Scheme 5.0
ECLGS 5.0 has been launched to help eligible businesses deal with short-term liquidity mismatches caused by the West Asia crisis. The scheme targets a total additional credit flow of Rs. 2,55,000 crore, including Rs. 5,000 crore for the airline sector.
The scheme is applicable to loans sanctioned from the date of the issued guidelines by NCGTC up to March 31, 2027, or till guarantees for an amount of Rs. 2,55,000 crore are issued, whichever is earlier.
| Detail | Information |
|---|---|
| Scheme Name | ECLGS 5.0 |
| Launched By | Union Cabinet, Government of India |
| Managed By | NCGTC |
| Beneficiaries | MSMEs, non-MSMEs and scheduled passenger airlines |
| Guarantee Coverage | 100% for MSMEs, 90% for non-MSMEs and airlines |
| Maximum Loan Amount | Rs. 100 crore for MSMEs/non-MSMEs, Rs. 1,500 crore for airlines |
| Guarantee Fee | Nil |
| Duration | Up to March 31, 2027 |
| Official Website | financialservices.gov.in |
Purpose of ECLGS Scheme
The purpose of the scheme is to provide guarantee coverage for the additional credit facilities issued to eligible borrowers. Under ECLGS 5.0, the guarantee coverage is 100% on the amount in default for MSMEs and 90% for non-MSMEs as well as the airline sector.
For MSMEs and non-MSMEs, the additional credit is up to 20% of the peak fund based working capital outstanding during the fourth quarter of FY 2025-26, capped at Rs. 100 crore per borrower. For the airline sector, the support is up to 100% of the total peak credit outstanding during the same period, capped at Rs. 1,500 crore per borrower.
Key Features of ECLGS 5.0
Some of the main features of ECLGS 5.0 are given below.
- Guarantee coverage - 100% for MSMEs and 90% for non-MSMEs as well as the airline sector.
- Maximum loan amount - Rs. 100 crore per borrower for MSMEs and non-MSMEs, and Rs. 1,500 crore per borrower for the airline sector.
- Guarantee fee - No guarantee fee is charged under the scheme.
- Tenor of loan - 5 years for MSMEs and non-MSMEs including a moratorium of 1 year, and 7 years for the airline sector including a moratorium of 2 years.
Components of ECLGS Scheme
The ECLGS scheme has been rolled out in several versions since 2020. The earlier versions are listed below along with the latest ECLGS 5.0.
- ECLGS 1.0 - ECLGS 1.0 refers to the scheme for providing 100% guarantee to member lending institutions in respect of eligible credit facilities extended by them to borrowers whose total credit outstanding (fund based only) across all lending institutions and days past due as on February 29, 2020 was up to Rs. 50 crore and up to 60 days respectively.
- ECLGS 1.0 (Extension) - ECLGS 1.0 (Extension) refers to the scheme for providing additional support to existing borrowers of ECLGS 1.0 or new borrowers eligible under ECLGS 1.0 based on the revised reference date of March 31, 2021.
- ECLGS 2.0 - ECLGS 2.0 refers to the scheme for providing 100% guarantee to member lending institutions in respect of eligible credit facilities extended by them to borrowers in the 26 sectors identified by the Kamath Committee on Resolution Framework and the healthcare sector, whose total credit outstanding as on February 29, 2020 was above Rs. 50 crore and not exceeding Rs. 500 crore.
- ECLGS 2.0 (Extension) - ECLGS 2.0 (Extension) refers to the scheme for providing additional support to existing borrowers of ECLGS 2.0 or new borrowers eligible under ECLGS 2.0 based on the revised reference date of March 31, 2021.
- ECLGS 3.0 - ECLGS 3.0 refers to the scheme for providing 100% guarantee to member lending institutions in respect of eligible credit facilities issued to borrowers in the hospitality and related sectors and the civil aviation sector.
- ECLGS 3.0 (Extension) - ECLGS 3.0 (Extension) refers to the scheme for providing additional support to existing borrowers of ECLGS 3.0 or new borrowers eligible under ECLGS 3.0 based on the revised reference date of March 31, 2021 or January 31, 2022.
- ECLGS 4.0 - ECLGS 4.0 refers to the scheme for providing 100% guarantee to member lending institutions in respect of eligible credit facilities extended to eligible hospitals, nursing homes, clinics, medical colleges and units engaged in manufacturing of liquid oxygen, oxygen cylinders and other items for setting up on-site oxygen producing plants.
- ECLGS 5.0 - ECLGS 5.0 refers to the scheme for providing credit guarantee coverage of 100% for MSMEs and 90% for non-MSMEs as well as the airline sector to Member Lending Institutions for the amount in default under the additional credit facilities extended to eligible borrowers.
Eligibility for ECLGS 5.0
For MSMEs and non-MSMEs, all business enterprises having fund based working capital limits from Member Lending Institutions as on March 31, 2026 are eligible, provided their credit facilities are standard. For the airline sector, business enterprises in the scheduled passenger airline sector having outstanding credit facilities as on March 31, 2026 are eligible.
How to Apply for ECLGS 5.0
There is no direct online application for the ECLGS scheme. Borrowers need to apply to the bank or NBFC where they already have working capital limits. The lender checks the eligibility and sanctions the additional credit facility under the scheme.
STEP 1 - Contact the bank or NBFC where the borrower has existing fund based working capital limits as on March 31, 2026.
STEP 2 - The lending institution checks whether the borrower account is standard and meets the eligibility conditions of the scheme.
STEP 3 - On approval, the additional credit facility is sanctioned as a separate loan account and covered under ECLGS 5.0.
The full operational guidelines of ECLGS 5.0 are available in PDF format on the NCGTC website.
FAQ's
What is ECLGS 5.0?
ECLGS 5.0 is the latest version of the Emergency Credit Line Guarantee Scheme launched on May 8, 2026. It provides credit guarantee coverage of 100% for MSMEs and 90% for non-MSMEs as well as the airline sector.
Who is eligible under ECLGS 5.0?
MSMEs and non-MSMEs having fund based working capital limits as on March 31, 2026 and scheduled passenger airlines with outstanding credit facilities as on the same date are eligible, provided their accounts are standard.
What is the maximum loan amount under ECLGS 5.0?
The maximum loan amount is Rs. 100 crore per borrower for MSMEs and non-MSMEs, and Rs. 1,500 crore per borrower for the airline sector.
Is there any guarantee fee under ECLGS 5.0?
No, no guarantee fee is charged under ECLGS 5.0.
