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Informist, Friday, May 29, 2026

NEW DELHI - The government has so far received applications from 20,000 micro, medium, and small enterprises for credit guarantee worth INR 250 billion under the newly launched Emergency Credit Line Guarantee Scheme 5.0, a senior finance ministry official said Friday. "All applications so far are from MSMEs, and none are from the aviation sector," the official said. 

The Union Cabinet earlier this month had approved INR 181 billion for the scheme, extending credit support to Indian businesses amid uncertainties related to the West Asia war. The scheme will help businesses, especially MSMEs and the airline sector, maintain their operations, protect jobs, and sustain supply chains. The government is aiming at a total additional credit flow of INR 2.55 trillion under the scheme.

The scheme will apply to all loans sanctioned till the end of 2026–27 (Apr-Mar) to help borrowers tide over any short-term liquidity mismatches in view of the West Asia crisis. Under the scheme, additional credit up to 20% of peak working capital utilised during Jan-Mar up to INR 1 billion is given as support. For airlines, up to 100% of working capital, capped at INR 15 billion per borrower, is given, subject to satisfying certain specific conditions.  End

Reported by Priyasmita Dutta 

Edited by Akul Nishant Akhoury

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