ECLGS 5.0 – Emergency Credit Line Guarantee Scheme
By National Credit Guarantee Trustee Company (NCGTC)
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Quick Answer
Collateral-free working capital top-up up to ₹100 crore for MSMEs impacted by the West Asia crisis
- Funding amount
- Up to ₹100Cr
- Funding type
- Debt
- Application deadline
- 149d — 31 Mar 2027
- Location
- Open to startups registered in India
About this loan
Government-backed additional working capital support for MSMEs, Non-MSMEs, and scheduled passenger airline enterprises impacted by short-term liquidity stress from the West Asia crisis. Eligible borrowers with live, standard credit facilities as on 31 March 2026 can access additional credit from their existing lenders without additional collateral. No guarantee fee is charged; interest rates are capped; tenure is up to 5 years with a 1-year moratorium (MSMEs / Non-MSMEs) or 7 years with a 2-year moratorium (airlines). Maximum additional credit: 20% of peak working capital outstanding (Q4 FY 2025–26) or ₹100 crore for MSMEs/Non-MSMEs; 100% of peak total credit outstanding or ₹1,500 crore for airlines.
Eligibility
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Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Grant providers
The National Credit Guarantee Trustee Company Limited (NCGTC) is a company wholly owned by the Department of Financial Services, Ministry of Finance, Government of India. It is not a lender and it does not give grants. It manages credit guarantee funds and schemes, which means…
Learn moreBenefits & Funding
- Amount
- Up to ₹100Cr
- Fund type
- Debt
- Equity
- Equity-free
- Repayment
- Repayable
What You Get
ECLGS 5.0 provides additional working capital credit guarantee support with no cost to the borrower on the guarantee itself:
- Guarantee cover: 100% for MSMEs, 90% for Non-MSMEs and the airline sector — NCGTC backs the Member Lending Institution's default risk.
- Loan quantum: up to 20% of peak fund-based working capital outstanding during Q4 FY2025–26 (1 Jan – 31 Mar 2026) for MSMEs/Non-MSMEs, capped at ₹100 crore per borrower.
- Airlines: up to 100% of peak total credit outstanding (fund + non-fund based) in the same window, capped at ₹1,500 crore per borrower (any amount beyond ₹1,000 crore up to ₹1,500 crore requires a proportionate promoter equity contribution).
- Interest rate capped at 9% p.a. for bank/FI lending to MSMEs/Non-MSMEs (EBLR/MCLR + 0.75%); NBFC lending is capped separately at 13% p.a.
- Zero guarantee fee, zero processing fee, zero prepayment penalty.
- Tenure: 5 years (1-year moratorium) for MSMEs/Non-MSMEs; 7 years (2-year moratorium) for airlines. Interest must still be serviced during the moratorium; airlines may fund up to 50% of moratorium-period interest via FITL from the additional facility itself.
- Bootstrap friendly
- Yes
Application Process
- 1
Confirm your credit facility is live
Confirm your credit facility is live and classified as standard as on 31 March 2026 (check with your lender's records).
You - 2
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How to apply
Four steps from draft to disbursement — one action each.
- 1
Draft your application
Answer the form inside the grant tracker — AI drafts each response using your past answers, so you're not starting from a blank page.
- 2
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 3
Submit on the official portal
Use the official application link and verify all details before final submission.
- 4
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Program templates & documents
Files the program publishes for applicants — download these and apply in the prescribed format.
Frequently Asked Questions
Who is eligible for ECLGS 5.0?
MSMEs, Non-MSMEs, and scheduled passenger airline enterprises that have live, standard credit facilities with a bank or NBFC as on 31 March 2026 and have faced liquidity stress from the West Asia crisis.
How much additional credit can I get under ECLGS 5.0?
MSMEs and Non-MSMEs can get up to 20% of their peak working capital outstanding in Q4 FY 2025–26, subject to a cap of ₹100 crore. Airlines can get up to 100% of peak total credit outstanding, capped at ₹1,500 crore.
Is collateral required?
No additional collateral is required. The credit guarantee is provided by NCGTC at no guarantee fee to the borrower.
What is the repayment tenure?
MSMEs and Non-MSMEs get a tenure of up to 5 years with a 1-year moratorium on principal. Airlines get up to 7 years with a 2-year moratorium.
How do I apply for ECLGS 5.0?
Apply through your existing bank or NBFC where you hold a credit facility. You can also initiate the application via the Jansamarth portal at jansamarth.in.
Is there a deadline to apply?
The scheme is available on a rolling basis for eligible borrowers with standard credit facilities as on 31 March 2026. Check with your lender or the official portal for current availability.
What guarantee cover does ECLGS 5.0 provide?
100% guarantee cover on the amount in default for MSMEs, and 90% for Non-MSMEs and the airline sector — this is the guarantee NCGTC extends to the lender, not a subsidy paid to the borrower.
Are there any fees to avail ECLGS 5.0?
No. The scheme charges nil guarantee fee, nil processing fee, and nil prepayment penalty.
What documents do I need to apply?
Valid Udyam Registration Certificate and PAN card of the business entity, GSTIN details, ITR data and bank statements for the past 12 months, statements showing your existing working capital facility is classified 'standard' as of 31 March 2026, and Aadhaar/PAN/mobile KYC for all directors, partners, or proprietors.
Are all non-MSME sectors eligible?
No. Certain non-MSME sectors such as power, telecom, and IT are excluded from the scheme (full list in Annexure-A of the scheme guidelines).
What is the interest rate cap for NBFC borrowers?
For loans routed through NBFCs, the rate of interest is capped at 13% p.a. (separate from the 9% p.a. cap that applies to bank/FI lending).
Sources
Data on this page is compiled from official program and provider references.
News
- ECLGS 5.0 crosses 1 lakh guarantees, covers Rs 48,484 crore in loans: Govtddnews.gov.in · 2 weeks ago
- Airlines Flag Delays In ECLGS 5.0 Credit Disbursalbusinessworld.in · 3 weeks ago
- Airlines seek urgent release of ECLGS 5.0 funds amid rising ATF prices, mounting cost pressurestravel.economictimes.indiatimes.com · 3 weeks ago
- Airlines seek Govt help to speed up bank credit under ECLGS 5.0socialnews.xyz · 3 weeks ago
- Cabinet Approves ECLGS 5.0 to Support Businesses Amid West Asia Crisisddnews.gov.in · last month
- ECLGS 5.0: Credit Flow Of Rs2.55 Tn Approvedfintechbiznews.com · last month
Source: Google News aggregated
