Emergency Credit Line Guarantee Scheme

Scheme Introduction: A Brief Overview

For businesses, a sudden rise in operating costs or a disruption in the market can create a short-term shortage of working capital, even when the business itself remains viable. The Emergency Credit Line Guarantee Scheme (ECLGS) is designed to provide additional credit support in such situations. Under the current ECLGS 5.0, eligible existing MSMEs and non-MSMEs can receive additional credit of up to 20% of their peak fund-based working capital outstanding during Q4 of FY 2025-26, subject to a maximum of ₹100 crore per borrower across all Member Lending Institutions (MLIs). Scheduled passenger airlines have a separate provision of up to 100% of their peak total credit outstanding, subject to a maximum of ₹1,500 crore. The scheme provides 100% guarantee coverage for MSMEs and 90% for eligible non-MSMEs and airlines, helping participating lenders extend additional credit while the borrower remains responsible for repayment of the loan.

Emergency Credit Line Guarantee Scheme 5.0 is the latest phase of the Emergency Credit Line Guarantee Scheme, first introduced in 2020 to support businesses during the COVID-19 period. The earlier ECLGS 1.0 to 4.0 phases closed on 31 March 2023 and together issued 1,19,52,715 guarantees covering ₹3,68,108.04 crore.

Under Emergency Credit Line Guarantee Scheme 5.0, eligible existing MSMEs and non-MSMEs can get additional credit of up to 20% of their peak qualifying working capital during Q4 FY 2025-26, subject to a maximum of ₹100 crore per borrower. Eligible scheduled passenger airlines can receive up to 100% of their peak total credit outstanding, subject to a maximum of ₹1,500 crore.

To qualify, borrowers generally must have had an eligible credit facility with a participating lender as of 31 March 2026, with the applicable accounts classified as Standard, excluding SMA-2. New borrowers are not eligible. Some sectors are also excluded for non-MSME borrowers, including NBFCs, power, telecom, sugar and ethanol, IT, paper and paper products, educational institutions, certain beverage businesses and tobacco.

The scheme provides 100% guarantee coverage for eligible MSMEs and 90% for eligible non-MSMEs and airlines. There is no guarantee fee, processing fee or prepayment penalty. Eligible MSMEs and non-MSMEs generally do not need to provide fresh collateral or a personal or corporate guarantee, subject to the scheme's security conditions.

The repayment period is 5 years for MSMEs and non-MSMEs, including a 1-year moratorium on principal repayment. For airlines, it is 7 years with a 2-year moratorium. The interest rate for eligible MSMEs and non-MSMEs is capped at 9% per annum under the prescribed benchmark-linked rates, while the maximum rate for NBFCs is 13% per annum.

Applications are submitted through the JanSamarth Portal. The lender checks the borrower's eligibility and credit requirement before deciding the final sanctioned amount. Approval of the maximum ₹100 crore is not automatic.

ECLGS 5.0 has an overall guarantee ceiling of ₹2.55 lakh crore, including ₹5,000 crore for the airline sector. The scheme is available until 31 March 2027 or until this limit is reached, whichever is earlier. As of 20 August 2026, the Government reported 6,73,979 guarantees worth ₹2,50,024 crore, so applicants should check the latest availability with their lender before applying.

Businesses that are exploring other forms of government-backed credit can also compare central government loan and business schemes available on GovtSchemes.in. The portal also lists the Pradhan Mantri Mudra Yojana (PMMY), which is relevant for eligible micro and small business borrowers looking for business credit through participating lenders. Readers can explore these related schemes to understand different credit-support options based on their business requirements.

Scheme Benefits

For eligible businesses, Emergency Credit Line Guarantee Scheme 5.0 can make it easier to access additional credit during a period of short-term financial pressure. The main benefits of the scheme include:

• Eligible MSMEs can get additional credit of up to 20% of their peak qualifying working capital during Q4 FY 2025-26, subject to a maximum of ₹100 crore per borrower.
• Eligible MSMEs receive 100% credit guarantee coverage to the lending institution for the amount in default under the additional credit facility.
• Eligible non-MSMEs can receive up to 20% additional credit, subject to the ₹100 crore maximum and applicable eligibility conditions, with 90% guarantee coverage.
• Eligible scheduled passenger airlines can receive additional credit of up to 100% of their peak total credit outstanding, subject to a maximum of ₹1,500 crore.
• No guarantee fee is charged under the scheme, reducing the additional cost associated with the government guarantee.
• No processing fee is charged for sanction of the ECLGS 5.0 facility under the scheme.
• No prepayment penalty is applicable when the ECLGS facility is repaid early, subject to the applicable lending terms.
• Eligible MSMEs and non-MSMEs generally do not need to provide fresh collateral or a personal or corporate guarantee for the additional facility, subject to the scheme's security conditions.
• Eligible MSMEs and non-MSMEs get a 5-year loan tenure, including a 1-year moratorium on principal repayment. Airlines have a 7-year tenure including a 2-year moratorium.
• The scheme provides a capped interest rate for eligible MSME and non-MSME borrowers, with the applicable rate for bank and financial-institution lending capped at 9% per annum under the prescribed benchmark-linked structure.
• The additional credit can help eligible businesses manage working-capital shortages, rising operating costs and temporary market disruptions without relying entirely on fresh unsecured borrowing outside the scheme.
• Applications are submitted through the JanSamarth Portal, providing a digital route for eligible borrowers to approach participating lenders.

How Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 Works

Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 provides additional credit through participating lenders. The process is completed online through the JanSamarth Portal.

1. Apply through the JanSamarth Portal and enter the required business and loan details.
2. Select a participating lender and branch.
3. The lender checks your eligibility and existing credit details.
4. The lender decides the amount of additional credit that can be sanctioned.
5. After approval, the lender submits the guarantee details to NCGTC.
6. NCGTC verifies the details and completes the guarantee process.
7. The lender disburses the approved credit according to the applicable terms.

Interest Rate and Repayment Terms

Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 caps the interest that lenders can charge. The loan tenure and moratorium depend on whether the borrower is a business or an airline.

Where the lender is an NBFC, the interest rate cannot exceed 13% per annum.

The moratorium applies only to principal repayment. Interest must be paid as and when it falls due, including during the moratorium period.

The guarantee fee under Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 is nil. No processing fee is charged for the facility, and no prepayment penalty applies.

Eligibility Requirements

Before applying for Emergency Credit Line Guarantee Scheme 5.0, borrowers must meet the scheme's eligibility conditions and the lending institution's applicable requirements. The main eligibility requirements are:

• The borrower must have an eligible existing credit facility with a participating lender as of 31 March 2026.
• Eligible borrowers include MSMEs, non-MSMEs and scheduled passenger airlines, subject to their respective conditions.
• The borrower's credit facilities must have been classified as Standard, excluding SMA-2, across all lenders on 31 March 2026.
• New borrowers who did not have an eligible credit relationship on 31 March 2026 cannot apply.
• MSMEs should generally have a valid Udyam Registration or Udyam Assist Certificate.
• For MSMEs and non-MSMEs, additional credit is based on peak eligible working capital during 1 January to 31 March 2026 and can be up to 20%, subject to the ₹100 crore maximum.
• Temporary or ad-hoc working capital limits cannot be used to increase the eligible amount.
• Certain sectors are excluded for non-MSME borrowers, including NBFCs, power, telecom, sugar and ethanol, IT, paper and paper products, educational institutions, certain beverage businesses and tobacco.
• Borrowers who have used the Credit Guarantee Scheme for Exporters (CGSE) may still be eligible after the applicable CGSE amount is adjusted.
• Meeting the eligibility conditions does not guarantee approval. The participating lender makes the final decision after assessing the borrower's credit requirement.

Who Is Not Eligible?

Not every business can use Emergency Credit Line Guarantee Scheme 5.0. Apart from the general eligibility conditions, the NCGTC guidelines specifically exclude certain sectors when the borrower is a non-MSME.

• New borrowers who did not have an eligible existing credit relationship with a participating lender as of 31 March 2026 cannot avail the scheme.
• Borrowers whose eligible credit facilities were not classified as Standard, excluding SMA-2, across lenders as of 31 March 2026 are not eligible.
• Non-MSME borrowers operating in excluded sectors cannot avail ECLGS 5.0 under the applicable provisions.
• The excluded non-MSME sectors include NBFCs, power generation, transmission and distribution, telecom service providers, sugar and ethanol manufacturing, IT companies, paper and paper products, educational institutions, certain beverage businesses, and tobacco.
• Ad-hoc or temporary working capital limits cannot be used to increase the qualifying amount for calculating the Emergency Credit Line Guarantee Scheme 5.0 credit limit.
• Borrowers who do not meet the applicable documentation, registration or lender-level credit requirements cannot receive the facility.

The sector exclusions mentioned above apply specifically to non-MSME borrowers. Eligibility should therefore be checked based on the borrower's MSME status, business activity and other conditions under the official Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 guidelines.

Required Documents

Applicants need to provide the information and documents required by the participating lender to verify their eligibility and process the Emergency Credit Line Guarantee Scheme 5.0 credit facility. The commonly required documents may include:

• Valid Udyam Registration Certificate or Udyam Assist Certificate for eligible MSME borrowers.
• PAN card and other KYC documents of the borrower and authorised persons, as required by the lender.
• Existing loan or working capital account details with the participating lender.
• Bank account statements and other financial records required to verify the borrower's existing credit exposure.
• Details of peak working capital utilisation during Q4 of FY 2025-26, as maintained and verified by the lender.
• GST registration and related records, wherever applicable to the business.
• Business and financial documents requested by the lender for credit assessment and sanction of the additional facility.
• For scheduled passenger airlines, documents and financial information required to verify eligible credit facilities and the applicable promoter or owner equity contribution, where required.
• Any additional documents or declarations requested by the participating lender during the application and verification process.

The exact document list may vary depending on the borrower, lender, business structure and type of credit facility. Applicants should keep their existing loan and business records updated before submitting the application through the JanSamarth Portal.

Important Points to Know Before Applying

Before applying for Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, keep these important points in mind:

• Applying through JanSamarth does not guarantee loan approval. The lender makes the final decision.
• Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 is an additional loan facility, not a grant, subsidy or direct government loan.
• You may qualify for the maximum limit, but the lender can approve a lower amount based on your actual credit requirement.
• Your existing credit accounts must meet the required Standard account condition as of 31 March 2026.
• The ₹100 crore maximum limit for MSMEs and non-MSMEs applies across all participating lenders, not separately with each lender.
• The overall scheme limit is ₹2.55 lakh crore, including ₹5,000 crore for the airline sector.
• Temporary or ad-hoc working capital limits cannot be used to increase the amount you qualify for.
• MSMEs should keep their Udyam Registration or Udyam Assist Certificate and loan records ready.
• Check the latest scheme availability with your lender before applying, as the overall guarantee limit is fixed.
• The final loan terms, documents and disbursement are subject to the lender's credit process and ECLGS 5.0 guideline
• The moratorium covers only principal repayment. Interest must be paid as and when due, including during the moratorium period, so plan your cash flow accordingly.

Steps to Apply

Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 applications are submitted online through the JanSamarth Portal. The process starts with the borrower providing the required details, after which the selected lender checks the application and decides whether the additional credit can be sanctioned.

• First, open the JanSamarth Portal ECLGS 5.0 page and select the option to apply for the Emergency Credit Line Guarantee Scheme.
• Enter the required borrower, business and existing loan details in the application form. The information provided should match the records available with your lender.
• Complete the self-declaration and provide the details requested by JanSamarth to check your eligibility under ECLGS 5.0.
• During the application process, select the participating lender and the branch through which you want your application to be processed.
• Submit the completed application on JanSamarth. The portal will forward the application to the selected lender's branch for further assessment.
• The lender will verify your eligibility, existing credit exposure and working capital details. It will also assess the amount of additional credit required before taking a decision on the loan.
• If the lender approves the facility, the sanction details are updated on JanSamarth and shared with NCGTC for the guarantee process.
• After the lender completes the required guarantee formalities, NCGTC's system validates the details and generates the Credit Guarantee Permanent Account Number (CGPAN) for future reference.
• The lender then disburses the sanctioned Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 facility according to the applicable terms and reports the disbursement details to NCGTC.

It is important to note that submitting an application does not mean the loan will be approved automatically. The participating lender remains responsible for checking eligibility and assessing the borrower's credit requirement before sanctioning the facility.

Relevant Links

• Department of Financial Services – ECLGS Website
• JanSamarth Portal – Emergency Credit Line Guarantee Scheme (ECLGS) 5.0
• Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 FAQs
• National Credit Guarantee Trustee Company Limited (NCGTC)Portal
• PIB – Cabinet Approval of Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 Portal
• Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 Opretional Guidelines
• Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 Registration Undertaking

Contact Information

For Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 application-related queries and scheme-specific assistance, borrowers can contact the National Credit Guarantee Trustee Company Limited (NCGTC), which manages the scheme as trustee on behalf of the Department of Financial Services.

National Credit Guarantee Trustee Company Limited (NCGTC)

• Phone: 022-69035625 / 022-69035611
• Email: [email protected]
• Address: 1410, 14th Floor, Parinee Crescenzo, Plot No. C-38 & C-39, G-Block, Bandra Kurla Complex (BKC), Bandra East, Mumbai, Maharashtra – 400051
• Other Contact Details

For technical problems related to the Emergency Credit Line Guarantee Scheme (ECLGS) application on the JanSamarth platform or other ECLGS application systems, NCGTC also provides a dedicated IT helpdesk.

• IT Helpdesk Phone: 0253 6636 594
• IT Helpdesk Email: [email protected]