ECLGS 5.0 crosses 1 lakh guarantees, covers Rs 48,484 crore in loans: Govt
New Delhi, June 10
The Emergency Credit Line Guarantee Scheme 5.0 has crossed a major milestone, with the total number of guarantees issued under the scheme surpassing the one lakh mark, according to official data released on Wednesday.
As of June 9, 2026, a total of 1,06,549 guarantees have been issued under ECLGS 5.0, covering guarantees worth Rs 48,484.26 crore, the Ministry of Finance said.
The achievement highlights the extensive scale of credit support being provided to lenders and borrowers amid liquidity pressures arising from the West Asia crisis.
The scheme, which was approved by the Union Cabinet on May 5, 2026, aims to facilitate additional credit of Rs 2.55 lakh crore to existing borrowers facing financial challenges due to the ongoing geopolitical situation in West Asia.
Micro, Small and Medium Enterprises (MSMEs) have emerged as the primary beneficiaries of the scheme.
Of the total guarantees issued, 96 per cent by number and 86 per cent by value have been extended to the MSME sector, the ministry stated.
Public Sector Banks (PSBs) have played a key role in the scheme's implementation, accounting for 96 per cent of the guarantees issued.
Their participation has helped ensure the rapid rollout and acceptance of the programme across the country.
Under ECLGS 5.0, MSME borrowers receive 100 per cent guarantee coverage, while non-MSME borrowers are eligible for 90 per cent coverage.
The guarantee support has encouraged financial institutions to lend more aggressively, helping maintain the flow of credit to sectors requiring immediate liquidity support.
Officials said the scheme's widespread adoption has also been aided by the participation of a broad range of lending institutions, including public and private sector banks, Regional Rural Banks (RRBs), Small Finance Banks (SFBs) and Non-Banking Financial Companies (NBFCs).
This has enabled the scheme to achieve wider geographical and sectoral coverage.
— IANS
Reader Comments
Interesting numbers, but I wish there was more transparency on how these guarantees are actually reaching smaller MSMEs in Tier 2 and Tier 3 cities. Many small shop owners I know still struggle with paperwork and bank formalities. The intent is good, but execution on ground matters more.
As someone running a small manufacturing unit in Pune, I can say this scheme has been quite helpful. Got my loan approved within 15 days through a PSB. The 100% guarantee coverage for MSMEs gives banks confidence to lend without too much collateral. Keep it up, Modi ji! 🚀
Data shows 86% value going to MSMEs - that's impressive reach. But honestly, the scale of Rs 48,484 crore disbursed against Rs 2.55 lakh crore target means we've only covered about 19% so far. Need to speed up, West Asia crisis isn't waiting. Hope banks don't get too bureaucratic.
Living in Bangalore, I see many startups and small businesses benefiting from ECLGS. But as an economist, I wonder about the long-term debt burden on these firms. Short-term liquidity is crucial, but we also need structural support like market access and skill development. Not just credit.
PSBs doing 96% of guarantees - shows why public sector banks still matter in India! Private banks often shy away from small borrowers. Hats off to our banking staff who processed over 1 lakh guarantees. They deserve recognition too. 👏🇮🇳
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