Overview
- The government reported on Monday that ECLGS 5.0 has received about 2.62–2.63 lakh applications worth ₹1.71 lakh crore, with roughly 79,950 sanctions equal to ₹35,194 crore and guarantees of ₹15,720 crore issued based on data to May 29.
- The scheme provides 100% guarantee cover for MSMEs and 90% for non‑MSMEs and airlines, limits additional credit to about 20% of peak working capital with a ₹100 crore cap for most borrowers, and allows airlines higher caps and a seven‑year tenor.
- About 75–76% of applications come from the MSME sector and the plan includes a dedicated ₹5,000 crore carve‑out for passenger airlines within the total additional credit envelope.
- JanSamarth’s end‑to‑end digital pipeline is designed to finish application and sanction steps in five to seven days, and the government is running outreach drives to speed take‑up and disbursal through member banks.
- ECLGS 5.0 builds on earlier pandemic credit guarantees, remains open for loans sanctioned up to March 31, 2027, excludes accounts classified as SMA‑2 on March 31, 2026, and could limit short‑term job and supply‑chain losses while financial stress may show up with a lag if geopolitical shocks persist.