Emergency Credit Line Guarantee Scheme 5.0 (ECLGS 5.0)

  • A Special Scheme to provide additional credit support in view of West Asia situation.
  • Finance Up to 20% of the peak fund-based working capital outstanding (For MSMEs and Non-MSMEs (except Airline sector) between 01.01.2026 and 31.03.2026.
  • Credit Guarantee Coverage of 100% for MSMEs and 90% for non-MSMEs.
  • Applications must be routed mandatorily through the Jan Samarth Portal only.
  • Nil Margin, Guarantee fee, Processing fee and Pre Payment penalty.

SN

Parameter

Guidelines

1

Purpose

This is a special Scheme in view of West Asia Crisis. It seeks to provide additional credit support to eligible business borrowers in view of West Asia situation.

2

Nature of Facility

Working Capital Term Loan

3

Eligible Borrower under ECLGS 5.0

All business enterprises including MSMEs having fund based working capital limits as on 31.03.2026. (The account should not be classified under SMA 2 on 31.03.2026.)

4

Maximum Loan Amount

  • MSMEs/Non MSMEs (except Airline sector): ₹100 crore per borrower

5

Rate of Interest

MSMEs: 8.80 % at present

Non-MSMEs: 9.00 % at present

6

Tenor of Loan

  • For MSMEs/Non MSMEs (except Airline sector): 5 years from the date of first disbursement including moratorium of 1 year

7

Moratorium Period

One Year moratorium for Principal Repayment.

No moratorium for Interest Repayment

8

Security

Charge on existing securities (primary as well as collateral) and on assets created out of the loan under ECLGS 5.0, within 90 days from the date of first disbursement.

No additional collateral for additional credit extended under this scheme.

9

Validity of the Scheme

The Scheme would be applicable to all loans sanctioned during the period from the date of issue of these guidelines by NCGTC up to 31.03.2027 or till guarantees for an amount of Rs.2,55,000 crore are issued, whichever is earlier.

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