The Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 has achieved a significant milestone, with the total number of guarantees issued under the scheme surpassing one lakh within weeks of its launch. As of June 9, 2026, a total of 1,06,549 guarantees amounting to Rs 48,484.26 crore have been issued, highlighting the scheme’s rapid adoption and broad reach.

The scheme, approved by the Union Cabinet on May 5, 2026, aims to facilitate additional credit of up to Rs 2.55 lakh crore to existing borrowers affected by liquidity challenges arising from the ongoing West Asia crisis.

Micro, Small and Medium Enterprises (MSMEs) have emerged as the primary beneficiaries, accounting for 96% of the guarantees issued by number and 86% of the total guaranteed amount. Public Sector Banks have played a key role in the implementation, contributing nearly 96% of all guarantees issued under the scheme.

ECLGS 5.0 provides 100% guarantee coverage for eligible MSME loans and 90% coverage for non-MSME borrowers, encouraging lenders to extend credit while reducing their risk exposure. The scheme is being implemented through a broad network of lending institutions, including public and private sector banks, regional rural banks, small finance banks, and non-banking financial companies.

The government has also undertaken extensive outreach efforts through banks, industry associations, and state-level stakeholders to increase awareness and ensure eligible businesses can access the benefits of the scheme.

The strong response to ECLGS 5.0 underscores its importance as a key policy tool for supporting businesses, maintaining liquidity, and strengthening economic resilience during a period of global uncertainty.