The ECLGS 5.0 was approved by the Union Cabinet on May 5, 2026. The scheme aims to infuse additional credit of Rs 2.55 lakh crore to existing borrowers to tide over the liquidity challenges arising due to the West Asia crisis.
“As on June 9, 2026, the total number of guarantees issued under the scheme has officially crossed the 1 lakh mark, reaching a total of 1,06,549 with a total amount of guarantees at Rs 48,484.26 crore, demonstrating the extensive scale of credit protection being extended to lenders,” the ministry said in a statement.
Out of the total coverage, 96 per cent of the guarantees in terms of number and 86 per cent in terms of guaranteed amount belong to the MSME sector. Large participation by public sector banks, accounting for 96 per cent of guarantees, has ensured the quick acceptance of the scheme.
By providing 100 per cent and 90 per cent guarantee coverage to MSME and non-MSME sectors, respectively, it has encouraged financial institutions to extend credit aggressively, ensuring that liquidity flows to the sectors that need it the most, the ministry said.