The Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 has crossed 4.11 lakh guarantees to businesses affected by the West Asia geopolitical situation, with the guaranteed amount reaching over ₹1.55 lakh crore, the finance ministry said on Tuesday.

The scheme has benefited India's small businesses with 98 per cent of the total number of guarantees and 82 per cent of the total guaranteed amount going to MSMEs.

"Since launch, 4,11,497 guarantees have been issued under ECLGS 5.0, with the guaranteed amount reaching ₹1,55,229 crore — a sign of the scheme's rapid absorption across the lending ecosystem," the ministry said in a statement.

The ECLGS 5.0 was approved by the Union Cabinet on May 5, 2026. The scheme aims to infuse additional credit of ₹2.55 lakh crore to existing borrowers to tide over the liquidity challenges arising due to the West Asia crisis.

As the scheme evolves and outreach expands, it is expected to further strengthen liquidity support for businesses, including MSMEs and enable entrepreneurs to meet their liquidity needs in times of external challenges, the ministry added.

Published on July 7, 2026