{"id":362288,"date":"2026-05-06T15:53:47","date_gmt":"2026-05-06T10:23:47","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=362288"},"modified":"2026-05-06T15:57:45","modified_gmt":"2026-05-06T10:27:45","slug":"emergency-credit-line-guarantee-scheme-5-0","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/emergency-credit-line-guarantee-scheme-5-0\/","title":{"rendered":"Emergency Credit Line Guarantee Scheme 5.0"},"content":{"rendered":"<p><strong>News<\/strong>: The Union Cabinet approved Emergency Credit Line Guarantee Scheme 5.0 to support businesses facing liquidity stress due to the West Asia crisis.<\/p>\n<h2>About Emergency Credit Line Guarantee Scheme 5.0<\/h2>\n<figure id=\"attachment_362300\" aria-describedby=\"caption-attachment-362300\" style=\"width: 330px\" class=\"wp-caption aligncenter\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\" wp-image-362300\" src=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/05\/Source-PIB-1.jpg?resize=330%2C391&#038;ssl=1\" alt=\"Emergency Credit Line Guarantee Scheme 5.0\" width=\"330\" height=\"391\" srcset=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/05\/Source-PIB-1.jpg?resize=253%2C300&amp;ssl=1 253w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/05\/Source-PIB-1.jpg?w=700&amp;ssl=1 700w\" sizes=\"auto, (max-width: 330px) 100vw, 330px\" \/><figcaption id=\"caption-attachment-362300\" class=\"wp-caption-text\">Source &#8211; PIB<\/figcaption><\/figure>\n<ul>\n<li><strong>Emergency Credit Line Guarantee Scheme 5.0<\/strong> provides<strong> government-backed additional credit support<\/strong> to eligible businesses facing temporary liquidity stress.<\/li>\n<li><strong>Commencement of the Scheme:<\/strong> The Emergency Credit Line Guarantee Scheme was <strong>first commenced on 23.05.2020<\/strong> to help businesses facing liquidity stress during Covid-19 restrictions.<\/li>\n<li><strong>Nodal Ministry:<\/strong> The scheme is sponsored by the<strong> Department of Financial<\/strong> Services <strong>under the Ministry of Finance.<\/strong><\/li>\n<li><strong>Nodal Agency:<\/strong> The <strong>National Credit Guarantee Trustee Company Limited (NCGTC)<\/strong> acts as the nodal agency for providing guarantee coverage under the scheme.<\/li>\n<li><strong>Aim<\/strong>: The scheme aims to <strong>provide guaranteed collateral free loans to eligible businesses<\/strong> to help them <strong>manage short-term liquidity mismatches<\/strong> arising from the West Asia crisis.<\/li>\n<li><strong>Key Features of Emergency Credit Line Guarantee Scheme 5.0:<\/strong>\n<ul>\n<li><strong>Eligible Borrowers:<\/strong> <strong>MSMEs, non-MSMEs, and scheduled passenger airlines<\/strong> with standard accounts and existing working capital limits or outstanding credit facilities as on March 31, 2026 are eligible under the scheme.<\/li>\n<li><strong>Guarantee Coverage:<\/strong> The scheme provides <strong>100% guarantee coverage for MSMEs and 90% guarantee coverage for non-MSMEs and the airline<\/strong> sector <strong>through Member Lending Institutions.<\/strong><\/li>\n<li><strong>Guarantee Fee:<\/strong> The scheme provides guarantee coverage <strong>without charging any guarantee fee.<\/strong><\/li>\n<li><strong>Quantum of Support:<\/strong> Eligible borrowers can <strong>receive additional credit up to 20% of peak working capital utilized during Q4 FY26,<\/strong> capped at Rs.100 crore. <strong>Airlines can receive support up to 100% of outstanding credit facilities<\/strong>, capped at Rs.1,500 crore per borrower.<\/li>\n<li><strong>Loan Tenor:<\/strong> Loans for <strong>MSMEs and non-MSMEs will have a 5-year tenor with a 1-year moratorium<\/strong>, while <strong>airline sector loans will have a 7-year tenor with a 2-year moratorium.<\/strong><\/li>\n<li><strong>Duration and Guarantee Cover:<\/strong> The scheme will remain <strong>applicable for loans sanctioned up to 31.03.2027,<\/strong> and the guarantee cover period will remain co-terminus with the loan tenor.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>News: The Union Cabinet approved Emergency Credit Line Guarantee Scheme 5.0 to support businesses facing liquidity stress due to the West Asia crisis. About Emergency Credit Line Guarantee Scheme 5.0 Emergency Credit Line Guarantee Scheme 5.0 provides government-backed additional credit support to eligible businesses facing temporary liquidity stress. Commencement of the Scheme: The Emergency Credit&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/emergency-credit-line-guarantee-scheme-5-0\/\">Continue reading <span class=\"screen-reader-text\">Emergency Credit Line Guarantee Scheme 5.0<\/span><\/a><\/p>\n","protected":false},"author":10401,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,956,12039],"tags":[11872],"class_list":["post-362288","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-schemes-and-programs","category-knolls","tag-9pm-daily-factly","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/362288","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10401"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=362288"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/362288\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=362288"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=362288"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=362288"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}