The Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, approved by the Union Cabinet on 5th May 2026, provides liquidity support to businesses impacted by the West Asia geopolitical situation.
The scheme extends a 100% guarantee to additional loans for MSMEs and 90% for other segments, facilitating bank lending.
Since its launch, ECLGS 5.0 has issued 4,11,497 guarantees totaling ₹1,55,229 crore, with 98% of guarantees benefiting MSMEs.
Related current affairs
- Key Policy Measures Announced in 2026 Supporting Manufacturing, Energy Security, Trade/Investment, and Agriculture
- PSBs report historic improvement: GNPA at 1.9% in FY 2025–26, highest-ever net profit of ₹1.98 lakh crore
- Government initiatives and measures to enhance trade preparedness and export competitiveness of India’s textile sector
- Schemes to promote indigenous manufacturing of high-end and high-precision medical devices (PLI, Medical Device Parks, SMDI)
- Government Expands FTAs and Export Promotion Measures to Diversify Export Markets
- Nine Years of GST: Simplifying Taxation, Strengthening India