The Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, launched in May this year, has crossed more than four lakh guarantees, with the guaranteed amount reaching over one lakh fifty five thousand crore rupees. The MSMEs have emerged as the biggest beneficiaries of the scheme, with 98 per cent of the guarantees issued going to the sector, while 82 per cent of the total guaranteed amount has also been extended to MSMEs. The Finance Ministry said that the scheme is delivering fast, large-scale liquidity support to businesses affected by the West Asia geopolitical situation.
The Ministry noted that the ECLGS 5.0 scheme is designed to provide risk mitigation for lending institutions to extend additional credit to borrowers, helping businesses tide over cash-flow disruptions and sustain operations. It has also enabled financial institutions to lend more confidently, ensuring that liquidity reaches the needy sectors by extending 100 per cent guarantee coverage to additional loans for MSMEs and 90 per cent coverage for other business segments.
To maximise awareness and adoption of the scheme, the Department of Financial Services has led a structured outreach campaign across the country. The Ministry said these programmes are intended to ensure that eligible borrowers are aware of the scheme and are able to access its benefits, while Member Lending Institutions are equipped to facilitate its effective implementation.
