Government's ECLGS 5.0 Programme Disburses Rs 25,000 Crore Amid Growing Support

Government Approves Rs 25,000 Crore Under Emergency Credit Line Guarantee Scheme 5.0

The central government has disbursed approximately Rs 25,000 crore under the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 as of May 29, according to a senior government official. This significant amount was processed following around 20,000 applications received by the government in the morning of the same day.

The Union Cabinet approved the Emergency Credit Line Guarantee Scheme 5.0 on May 5 to support businesses facing short-term liquidity issues due to the West Asia crisis. The scheme aims to facilitate an additional credit flow of up to Rs 2.55 lakh crore, with Rs 5,000 crore specifically earmarked for the airline sector.

Under the scheme, the government provides a credit guarantee cover of 100 percent for Micro, Small and Medium Enterprises (MSMEs) and 90 percent for non-MSMEs, including the airline sector, to lending institutions through the National Credit Guarantee Trustee Company Ltd (NCGTC) for loans given to eligible borrowers.

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Loans under the scheme have a tenure of five years, including a one-year moratorium, for MSMEs and other businesses, while airlines will get a longer tenure of seven years with a two-year moratorium. The guarantee cover will be co-terminus with the loan tenor, and the scheme will remain open for loans sanctioned until March 31, 2027.

In a related development, the official stated that under the Bharat Maritime Fund, 23 policies have been issued till May 28. The $1.5-billion fund provides risk cover to Indian vessels on international sea routes, including war and high-risk zones.