ECLGS 5.0 Receives 20,000 MSME Applications; Rs 25,000 Crore Disbursed

New Delhi, Jun 1 (KNN) The government's Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 has received approximately 20,000 applications from micro, small and medium enterprises (MSMEs) since its launch, with the full allocated amount of Rs 25,000 crore already processed, a senior Finance Ministry official confirmed.

ECLGS 5.0: Strong Uptake from MSMEs

"We received around 20,000 applications, all from MSMEs, till this morning, and processed the required amount of Rs 25,000 crore. The scheme has been received very well," the official was quoted in a media report.

The official added that no applications from airlines had been received so far, despite the sector being eligible.

Under ECLGS 5.0, the government offers 100 per cent credit guarantee coverage for MSMEs and 90 per cent for non-MSMEs and airlines. Of the total corpus, Rs 5,000 crore has been specifically set aside for the aviation sector.

The scheme allows a maximum loan of Rs 1,000 crore per borrower, with an additional Rs 500 crore available subject to equivalent equity infusion by the borrower. Loans carry a tenure of up to seven years, including a two-year moratorium on repayment, aimed at easing near-term liquidity pressures.

Why Airlines Were Included

The Cabinet approved the scheme to address financial stress in the aviation sector stemming from a sharp rise in aviation turbine fuel (ATF) prices, compounded by airspace closures and reduced international operations. These factors have led to lower aircraft utilisation and tightening liquidity for carriers.

Bharat Maritime Fund Takes Shape

In a separate development, Finance Ministry officials said that 23 policies had been issued under the Bharat Maritime Fund as of May 28, with expectations that the insurance pool will expand and premiums will decline further over time.

The USD 1.5 billion fund, backed by a sovereign guarantee of Rs 12,980 crore, has been established to provide comprehensive maritime insurance coverage for Indian-flagged, India-bound, and India-originating vessels. 

The fund is designed to ensure that Indian trade retains access to affordable vessel insurance even while navigating volatile maritime corridors.

(KNN Bureau)