Emergency Credit Line Guarantee Scheme | ECLGS eligibility

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Emergency Credit Line Guarantee Scheme

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About the Emergency Credit Line Guarantee Scheme (ECLGS 5.0)

In view of the liquidity stress faced by businesses due to global economic disruptions, the Government of India has introduced the Emergency Credit Line Guarantee Scheme (ECLGS 5.0) to provide additional working capital support to existing borrowers.

The scheme aims to enable Business Enterprises, MSMEs, and eligible non-MSMEs to meet their operational liabilities, maintain business continuity, and address short-term liquidity mismatches through additional credit backed by government guarantee.

ECLGS eligibility

All MSME and Non-MSME business enterprises having existing working capital limits with Member Lending Institutions are eligible.
Borrower’s account should be regular and not overdue (no NPA or 2–3 months pending) as on 31st March 2026.
The scheme is applicable only to existing borrowers of the lending institution.
Eligible borrowers can avail additional credit up to 20% of peak working capital utilisation during Q4 FY 2025–26, subject to a maximum of Rs. 100 crore per borrower.
The scheme provides:
- 100% guarantee coverage for MSMEs
- 90% guarantee coverage for non-MSMEs and airline sector
No guarantee fee is payable under the scheme.
No additional collateral is required for the incremental loan.
The loan is provided as a separate Working Capital Term Loan (WCTL) account.