Government on Monday said that over 2.63 lakh applications for loan of ₹1.71 lakh crore have been received under latest version of Emergency Credit Line Guarantee scheme (ECLGS 5.0)The data are up to May 29.In the Interministerial briefing on West Asia, Manoj Ayyappan, Joint Secretary in the Financial Sevices Department, said that out of the total applications received, 79,950 have been sanctioned (number of applications). Of which, ₹35,194 crore has already been sanctioned. Based on the sanctions, the guarantee applications are flowing in, and ₹15,720 crore worth of guarantees have also been issued, he said.On May 5, the cabinet approved Emergency Credit Line Guarantee Scheme (ECLGS) 5.0. The scheme aims to provide credit guarantee coverage of 100 per cent for MSMEs and 90 per cent for non-MSMEs as well as airline sector, to Member Lending Institutions (MLIs) by National Credit Guarantee Trustee Company Limited (NCGTC) for the amount in default under the additional credit facility extended to the eligible borrowers to tide over any short-term liquidity mismatches in view of West Asia Crisis.According to a government statement, MSMEs and non-MSMEs with existing working capital limits and scheduled passenger airlines having outstanding credit facilities, as of March 31, 2026, provided their accounts are standard.Guarantee coverage: 100 per cent for MSMEs and 90 per cent for non-MSMEs as well as airline sector. There will no guarantee fee.Additional credit up to 20 per cent of peak working capital utilised during Q4 FY 26 (capped at ₹100 crore). For airlines up to 100 per cent (capped at ₹1,500 crore per borrower, subject to satisfying certain specific conditions).Tenor of LoanFor MSMEs/Non MSMEs (except Airline sector): 5 years from the date of first disbursement, including moratorium of 1 year.For airline sector: 7 years from the date of first disbursement including moratorium of 2 years.Tenure of Guarantee Cover: Maximum period of guarantee cover shall be co-terminus with the tenor of the loan.Duration of the Scheme: The Scheme would be applicable to all loans sanctioned during the period from the date of issue of these guidelines by NCGTC upto 31.03.2027The scheme aims to enable businesses to tide over the challenges arising from the West Asia conflict. Additionally, this is expected to help businesses maintain their operations, protect jobs and sustain supply chains. The proposed credit guarantee scheme is a major step to help businesses, particularly MSMEs and airline sector, to ensure their additional working capital needs, are catered by the Banks & FIs. By providing timely liquidity, the scheme will sustain the businesses and prevent job losses, the statement added.Published on June 1, 2026