ECLGS 5.0 crosses 4.11 lakh guarantees worth over ₹1.55 lakh crore
The Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 has issued 4,11,497 guarantees worth ₹1,55,229 crore, with 98% of guarantees by number going to MSMEs (Finance Ministry, 7 July 2026).
Summary
The Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 has issued 4,11,497 guarantees worth ₹1,55,229 crore since launch, the Finance Ministry said on 7 July 2026. Approved by the Union Cabinet on 5 May 2026, the scheme gives liquidity support to businesses hit by the West Asia geopolitical situation. It offers 100% guarantee cover on additional loans to MSMEs and 90% to other business segments. MSMEs account for 98% of guarantees by number and 82% of the amount guaranteed. The Department of Financial Services is running outreach through State Level Bankers' Committees with NCGTC, PSB Alliance and banks; Phase 1 covered nine locations from 20 May to 6 June 2026.
Key facts
- Guarantees
- 4,11,497
- Amount
- ₹1,55,229 crore
- Cabinet approval
- 5 May 2026
- Trigger
- West Asia geopolitical situation
- Guarantee cover
- 100% for MSMEs; 90% for other businesses
- MSME share
- 98% by number; 82% by amount
- Outreach
- DFS via SLBCs with NCGTC; Phase 1: 9 locations, 20 May–6 June 2026
Practice MCQs 3 questions
As of July 2026, how many guarantees had been issued under ECLGS 5.0?
Show answer
Correct answer: A — 4,11,497 guarantees worth ₹1,55,229 crore
Since launch, 4,11,497 guarantees worth ₹1,55,229 crore had been issued under ECLGS 5.0.
What guarantee coverage does ECLGS 5.0 give on additional loans to MSMEs?
Show answer
Correct answer: B — 100%
ECLGS 5.0 gives 100% guarantee cover on additional loans to MSMEs and 90% to other business segments.
Consider the following statements about ECLGS 5.0: 1. It was approved by the Union Cabinet on 5 May 2026. 2. MSMEs account for 98% of guarantees issued by number. 3. It gives 90% guarantee cover to MSMEs and 100% to other businesses. Which of the statements given above are correct?
Show answer
Correct answer: C — 1 and 2 only
Statements 1 and 2 are correct. Statement 3 reverses the figures: MSMEs get 100% cover and other businesses 90%.