Indian government launches ECLGS 5.0 unlocking ₹2.55L cr for businesses
The government just rolled out Emergency Credit Line Guarantee Scheme 5.0 (ECLGS 5.0), aiming to support Indian businesses feeling the pinch from the ongoing West Asia conflict.
This move unlocks up to ₹2.55 lakh crore in extra loans, with a special ₹5,000 crore set aside for airlines.
The government will cover about ₹18,000 crore in guarantees for these loans.
MSMEs 20% cap airlines ₹1,500 cr
The scheme is open to MSMEs and other businesses (except airlines), letting them borrow up to 20% of their peak working capital from Q4 FY26, capped at ₹100 crore per borrower.
Airlines get a bigger slice, up to 100% of their needs, maxing out at ₹1,500 crore each.
Loans last five years for most sectors (seven for aviation), with interest rates capped at 9% for banks and no guarantee fees.
ECLGS aims preserve jobs supply chains
Loans approved by March 31, 2027 qualify, and the main goal here is pretty clear: keep businesses running, protect jobs, and make sure supply chains don't break down during these tough times.