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Cabinet Clears ECLGS 5.0 to Pump Rs 2.55 Lakh Crore Credit for MSMEs and Airlines
India
Published on 6 May 2026
100% guarantee for MSMEs as airlines get separate caps
The Union Cabinet has approved ECLGS 5.0, a new Emergency Credit Line Guarantee Scheme aimed at easing credit access for MSMEs and airlines hit by disruptions tied to the West Asia crisis. The government expects up to Rs 2.55 lakh crore in credit support, including Rs 5,000 crore for airlines, backed by guarantees, capped lending rates, and extended repayment timelines.
- ECLGS 5.0 targets up to Rs 2.55 lakh crore credit support for MSMEs
- Guarantee coverage is 100% for MSMEs and 90% for non MSMEs and airlines
- Interest rates are capped at 9% for banks and 13% for NBFCs
- Scheme runs until 31 March 2027 with multi year tenors
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