ECLGS 5.0 Crosses 4.11 Lakh Guarantees, Over Rs 1.55 Lakh Cr Disbursed: Finance Ministry

New Delhi, Jul 7 (KNN) The Ministry of Finance on Tuesday said the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 has crossed 4.11 lakh guarantees for businesses affected by the West Asia geopolitical situation, with the total guaranteed amount exceeding Rs 1.55 lakh crore.

In a release, the ministry said, “Since launch, 4,11,497 guarantees have been issued under ECLGS 5.0, with the guaranteed amount reaching to Rs 1,55,229 crore — a sign of the scheme's rapid absorption across the lending ecosystem.” 

It added that micro, small and medium enterprises (MSMEs) accounted for 98 per cent of the total number of guarantees and 82 per cent of the total guaranteed amount.

However, industry bodies representing MSMEs have highlighted challenges in accessing credit. KNN has learned that these organisations point to a clear disparity in lending speeds, noting that private sector banks are often slower to disburse loans and, in some cases, remain hesitant to take on such exposures compared to public sector banks.

ECLGS 5.0 was approved by the Union Cabinet on May 5, 2026, with the aim of infusing additional credit of Rs 2.55 lakh crore to existing borrowers to help them tide over liquidity challenges arising from the West Asia crisis. 

The finance ministry noted that as the scheme evolves and outreach expands, it is expected to further strengthen liquidity support for businesses, including MSMEs, and help entrepreneurs meet their liquidity needs during periods of external challenges.

(KNN Bureau)