Cabinet-approved in May 2026 to help MSMEs navigate the West Asia crisis. Get up to 20% of your peak working capital as an additional collateral-free loan, backed 100% by the Government of India — at zero guarantee fee.
The Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 was approved by the Union Cabinet on 5 May 2026, chaired by Prime Minister Narendra Modi. It is the fifth version of the ECLGS programme, which was originally launched in May 2020 under the Aatmanirbhar Bharat package to support businesses through the COVID-19 disruption.
ECLGS 5.0 is targeted specifically at businesses — particularly MSMEs — facing short-term liquidity mismatches caused by the ongoing West Asia (Middle East) conflict, which has disrupted global trade routes, supply chains, and payment timelines for Indian exporters and importers.
Under the scheme, the Government of India — through NCGTC (National Credit Guarantee Trustee Company Limited), a wholly-owned entity under the Ministry of Finance — provides a credit guarantee of 100% (for MSMEs) or 90% (for non-MSMEs and airlines) to banks and NBFCs. This means banks can lend you additional working capital without taking any fresh collateral, because the government is standing behind the loan.
ECLGS 5.0 is available to existing borrowers only — you must already have a working capital facility with a bank or NBFC that is participating in the scheme. New borrowers without an existing credit relationship cannot apply.
| Criteria | MSMEs | Non-MSMEs | Airlines |
|---|---|---|---|
| Must have existing working capital limits | YES | YES | YES |
| Account must be Standard as on 31.03.2026 (no SMA-2) | YES | YES | YES |
| Account must not be NPA at time of sanction | YES | YES | YES |
| Udyam Registration or Udyam Assist Certificate (UAC) | Required | Not required | Not applicable |
| Govt guarantee coverage | 100% | 90% | 90% |
| Max loan cap | ₹100 Crore | ₹100 Crore | ₹1,500 Crore |
The loan amount is calculated based on your highest working capital usage during Q4 FY 2025-26 (January 1, 2026 to March 31, 2026) — this is called the "peak fund-based working capital outstanding." The bank looks at your credit utilisation records across this quarter to determine the peak level.
| Parameter | MSMEs / Non-MSMEs | Airline Sector |
|---|---|---|
| Loan quantum | Up to 20% of peak fund-based WC in Q4 FY26 | Up to 100% of peak total credit (fund + non-fund) |
| Maximum cap | ₹100 crore per borrower | ₹1,500 crore per borrower |
| Moratorium period | 1 year on principal | 2 years on principal |
| Total tenure | 5 years (incl. moratorium) | 7 years (incl. moratorium) |
| Repayment period | 4 years after moratorium | 5 years after moratorium |
| Interest during moratorium | Payable; up to 50% can be covered by FITL from loan | Up to 50% of moratorium interest via FITL |
| Interest rate (MSME) | EBLR + 0.75% · capped at 9% p.a. | As per bank's board-approved policy |
| Interest rate (non-MSME) | 3M MCLR + 0.75% · capped at 9% p.a. | — |
| NBFCs rate cap | Maximum 13% p.a. | — |
| Nature of facility | Working Capital Term Loan | Working Capital Term Loan |
| Collateral | None required (zero fresh collateral) | None for amounts up to ₹500 Cr |
| Processing fee | Nil | Nil |
| Pre-payment penalty | Nil | Nil |
| Guarantee fee | Nil (borne by Govt) | Nil (borne by Govt) |
You do not apply for ECLGS directly on the NCGTC website. Applications are processed through your existing bank or NBFC. The two routes are: your home branch, or the Jan Samarth portal.
Since ECLGS 5.0 is only available to existing borrowers, your bank already has most of your records. The additional documents needed are minimal.
All major scheduled commercial banks and NBFCs are participating as Member Lending Institutions (MLIs). Below are the officially confirmed details from the top public sector banks.
| Bank | MSME Rate | Non-MSME Rate | How to Apply |
|---|---|---|---|
| State Bank of India | EBLR + 0.75% · max 9% | MCLR + 0.75% · max 9% | Home branch or SBI YONO Business app; also via jansamarth.in |
| Canara Bank | EBLR + 0.75% · max 9% | MCLR + 0.75% · max 9% | Home branch; Canara Bank website → ECLGS 5.0 page |
| Bank of India | RBLR + 0.75% · max 9% | MCLR + 0.75% · max 9% | bankofindia.bank.in/eclgs5.0-scheme or home branch |
| Bank of Baroda | EBLR + 0.75% · max 9% | MCLR + 0.75% · max 9% | Home branch or BOB World Business app |
| Punjab National Bank | EBLR + 0.75% · max 9% | MCLR + 0.75% · max 9% | Home branch or pnbindia.in |
| NBFCs | Capped at maximum 13% p.a. (per NCGTC guidelines) | Contact your existing NBFC lender directly | |
The following non-MSME businesses are explicitly excluded from ECLGS 5.0 per NCGTC's Annexure-A. Note that if these businesses qualify as MSMEs under the Udyam criteria, they may still be eligible. Check with your bank.