Business 10 Jun, 2026

Over 1 lakh guarantees totalling Rs 48,484 cr issued under ECLG scheme since May 5: FinMin

Business To Business, New Delhi, 10^th June, 2026:  The Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 has crossed a significant milestone within a month of its launch, with more than 1 lakh guarantees issued and credit guarantees amounting to ₹48,484.26 crore, according to the Union Finance Ministry.
Key Figures
As of June 9, 2026:

• Total guarantees issued: 1,06,549
• Total value of guarantees: ₹48,484.26 crore

The ministry said these figures reflect the large-scale credit support being extended to lenders and borrowers under the scheme.
Purpose of ECLGS 5.0
The ECLGS 5.0 was approved by the Union Cabinet on May 5, 2026.
The scheme aims to facilitate up to ₹2.55 lakh crore in additional credit for existing borrowers facing liquidity pressures arising from the West Asia crisis.
Its objectives include:

• Supporting businesses affected by economic disruptions.
• Improving access to working capital.
• Encouraging banks and financial institutions to continue lending.
• Providing government-backed credit guarantees to reduce lending risk.

How the Scheme Works
Under the ECLGS framework, the government provides guarantees on eligible loans extended by banks and financial institutions. This lowers the credit risk for lenders and enables businesses to access additional funds during periods of financial stress.
Economic Significance
The rapid uptake of ECLGS 5.0 suggests strong demand for liquidity support among businesses. The scheme is part of the government's broader efforts to cushion the impact of external shocks on the economy and maintain the flow of credit to productive sectors.
Outlook
With guarantees worth nearly ₹48,500 crore already issued against the scheme's overall target of ₹2.55 lakh crore, policymakers and lenders will closely monitor:

• The pace of future disbursements.
• Sector-wise utilization of the scheme.
• Its effectiveness in easing liquidity constraints.
• The broader economic impact of the West Asia-related disruptions.

The latest figures indicate that ECLGS 5.0 has seen a strong initial response from borrowers and lenders alike, highlighting its role as a key credit-support mechanism during the current period of economic uncertainty.