Already issued credit cover of INR 157 bln under ECLGS to aid industry
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This story was originally published at 19:24 IST on 1 June 2026
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--Govt: Sanctioned INR 350 bln under ECLGS 5.0
--Govt: Issued credit guarantee worth INR 157 bln under ECLGS 5.0
NEW DELHI – The government has so far received applications from 262,800 industries for credit guarantee worth INR 1.71 trillion under the newly launched Emergency Credit Line Guarantee Scheme 5.0, Joint Secretary in the Department of Financial Services, Manoj Muttathil Ayyappan, said Monday. Credit guarantees have been issued for over 26,000 accounts, totalling INR 157 billion, he said.
"75% applications so far are from micro, medium, and small enterprises," Ayyappan said while briefing the media on the West Asia war. According to him, financial institutions have sanctioned around INR 350 billion till Friday, for 79,950 applications. Of the total amount sanctioned, INR 304 billion was for MSMEs, he added.
Last month, the Union Cabinet 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 conditions. End
Reported by Priyasmita Dutta
Edited by Avishek Dutta
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