New Delhi, [India] June 1 (ANI): The Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, approved by the Union Cabinet last month to support businesses facing liquidity stress amid the ongoing West Asia crisis, has witnessed significant traction within weeks of its launch, according to the latest implementation data.

As of May 29, 2026, more than 2.62 lakh applications have been sourced under the scheme, with the total value of applications reaching approximately Rs 1.71 lakh crore, official figures showed.

Of the total applications received, nearly 79,950 have been sanctioned, translating into sanctions worth around Rs 35,194 crore. Guarantees have already been issued for over 26,000 accounts, covering an amount of approximately Rs 15,720 crore.

Micro, Small and Medium Enterprises (MSMEs) account for a major share of the demand generated under the scheme. Applications worth about Rs 1,31,107 crore have been received from MSMEs, while sanctions amounting to nearly Rs 30,355 crore have been extended to the sector so far.

The Union Cabinet approved ECLGS 5.0 on May 5, 2026, with the objective of providing additional credit support to eligible businesses facing short-term liquidity mismatches due to disruptions arising from the West Asia situation.

Under ECLGS 5.0, the National Credit Guarantee Trustee Company Limited (NCGTC) provides credit guarantee coverage to member lending institutions for additional credit extended to eligible borrowers. The scheme offers 100 per cent guarantee coverage for MSMEs and 90 per cent coverage for non-MSMEs and scheduled passenger airlines.

Eligible borrowers include MSMEs and non-MSMEs with existing working capital limits, as well as scheduled passenger airlines having outstanding credit facilities as on March 31, 2026, provided their accounts are classified as standard.

The strong response recorded during the initial weeks of implementation indicates substantial demand for guaranteed credit support, particularly among MSMEs, which continue to account for the bulk of applications and sanctions under the scheme.

ECLGS was originally launched in 2020 during COVID as part of the government's efforts to support businesses affected by economic disruptions. The latest version of the scheme seeks to ensure continued access to credit and maintain business continuity for enterprises impacted by evolving global developments. (ANI)