Emergency Credit Line Guarantee Scheme 5.0 ECLGS 5.0
Extra working capital loans with a full government guarantee for MSMEs hit by the West Asia crisis, sanctioned through existing lenders until March 2027 or until the guarantee pool runs out.
Last updated on
- Cost to apply
- No guarantee fee
- Status
- Status unclear
- Run by
- National Credit Guarantee Trustee Company (NCGTC), Department of Financial Services
What you get
- Additional credit up to 20% of peak working capital used in January to March 2026, capped at ₹100 crore
- 100% guarantee cover for MSMEs, 90% for other businesses
- No guarantee fee
- Loan tenor 5 years including a 1 year moratorium
Who can apply
- Businesses that are already running.
- Micro, small and medium enterprises.
- The most on offer is ₹100 crore.
- Must have existing working capital limits as of 31 March 2026
- Account must be standard
How to apply
- Apply on the Jan Samarth portal with a self-declaration
- Contact your bank branch, which sanctions the additional loan
In person, your bank branch
In Kerala, through your existing bank
Worth knowing
Open for loans sanctioned until 31 March 2027 or until guarantees of ₹2.55 lakh crore are issued, whichever is earlier. News reports say guarantees reached about ₹2.5 lakh crore by 20 August 2026 and NCGTC told lenders to apply only within the remaining pool, so little or no cover may be left.
Where we found this
- PIB, Cabinet approves ECLGS 5.0, 5 May 2026 (external site) Official announcement
- PIB, ECLGS 5.0 financial support to MSMEs, 28 May 2026 (external site) Official announcement
- Construction World, ECLGS 5.0 issues 6,73,979 guarantees (external site) Other source
An independent guide by The Company of Four, not a government website. Schemes change often, so check every detail on the official website before you apply. Links marked ↗ open external websites that we do not run, and we are not responsible for their content. Seen something out of date? Tell us and we will look into it.