Central · Credit Guarantee
Emergency Credit Line Guarantee Scheme 5.0
- Maximum benefit
- Extra credit up to 20% of peak Q4 FY26 working capital use, capped at ₹100 Crore, 100% guaranteed, nil fee
- Who can apply
- Micro, Small, Medium enterprises, for specific activities only
- Status
- Open; current term ends 31 March 2027
Is ECLGS 5.0 open? Key facts at a glance
ECLGS 5.0 (Central): Extra credit up to 20% of peak Q4 FY26 working capital use, capped at ₹100 Crore, 100% guaranteed, nil fee.
Last verified: 20 Oct 2026. How we check our information
| Status | Open. Confirm the status before you apply (see the note on this page). |
|---|---|
| Level | Central government scheme |
| Type of benefit | Additional Working Capital with 100% Guarantee |
| Maximum benefit | Extra credit up to 20% of peak Q4 FY26 working capital use, capped at ₹100 Crore, 100% guaranteed, nil fee |
| Project cost range | Existing working capital borrowers; extra credit up to ₹100 Crore |
| Who can apply | Micro, Small, Medium enterprises (Manufacturing, Service, Trading). Only for: Only for borrowers that already had a working capital limit with a bank or NBFC, with the account standard on 31 March 2026. |
| Implementing agency | National Credit Guarantee Trustee Company (NCGTC), Department of Financial Services, Ministry of Finance |
| Where to apply | NCGTC circulars (apply through your lender) |
| Official notification | Read the notification · notified 5 May 2026 |
| Current term ends | 31 March 2027 |
| Last verified | 20 Oct 2026 · How we check |
What is ECLGS 5.0?
ECLGS 5.0, approved by the Union Cabinet on 5 May 2026, lets borrowers with existing working capital limits and standard accounts on 31 March 2026 take additional credit of up to 20% of the peak working capital they used in January–March 2026, capped at ₹100 crore.
NCGTC guarantees 100% of it with no guarantee fee; the tenor is five years including a one-year moratorium. Loans can be sanctioned up to 31 March 2027. Since August 2026 fresh sanctions are for MSMEs (and airlines) only, first come first served within a ₹2.50 lakh crore cap.
Official notification · notified 5 May 2026
What are the key benefits of ECLGS 5.0?
- Additional credit of up to 20% of the peak working capital used in January–March 2026 (Q4 of 2025-26), capped at ₹100 crore.
- 100% guarantee from NCGTC, with no guarantee fee.
- Tenor of five years, including a one-year moratorium.
- Loans can be sanctioned from the date of NCGTC's guidelines (8 May 2026) up to 31 March 2027.
What could a unit get under ECLGS 5.0?
The ceiling the scheme sets. What a particular unit receives depends on its project cost, location and the conditions on this page, so no rupee figure is worked out here.
Up to the scheme’s limits: Extra credit up to 20% of peak Q4 FY26 working capital use, capped at ₹100 Crore, 100% guaranteed, nil fee
Illustrative only: this is the scheme’s maximum, not an estimate for your unit. Source: Union Cabinet decision of 5 May 2026 (pmindia.gov.in); NCGTC letters 0264/NCGTC/ECLGS5.0 (8 May 2026, operational guidelines), 0885/NCGTC/ECLGS 5.0 (3 August 2026, non-MSME sanctions stopped) and 0961/NCGTC/ECLGS5.0 (18 August 2026, ₹2.50 lakh crore cap).
Who can apply for ECLGS 5.0?
- Borrowers of banks and NBFCs with an existing working capital limit whose account was standard on 31 March 2026.
- Since 3 August 2026 lenders may not make fresh sanctions to non-MSME borrowers (other than airlines), so the remaining cover is for MSMEs.
Eligible business types
MSME categories covered
Eligible industries
How do I apply for ECLGS 5.0?
- There is no separate application: ask your existing lender for the additional credit under ECLGS 5.0.
- The lender sanctions it and claims the NCGTC guarantee; cover is given first come, first served.
Which documents are needed for ECLGS 5.0?
- Existing working capital sanction letter
- Statement of working capital used in January–March 2026
Why are ECLGS 5.0 applications rejected?
- Account not standard on 31 March 2026
- No existing working capital limit
- Overall ₹2.50 lakh crore guarantee cap already used
Subsidy Setu's DPR preparation process addresses all common rejection points before filing.
Frequently asked questions about ECLGS 5.0
- Is ECLGS 5.0 open?
- It is listed as open, but confirm the status before you apply: Guarantees are given first come, first served within the scheme's overall cap of ₹2.50 lakh crore (NCGTC, 18 August 2026), and lenders can sanction only until 31 March 2027. Ask your bank whether cover is still available before you apply. Status last verified: 20 Oct 2026.
- Who can apply for ECLGS 5.0?
- Micro, Small, Medium enterprises (Manufacturing, Service, Trading). Only for: Only for borrowers that already had a working capital limit with a bank or NBFC, with the account standard on 31 March 2026.
- What is the maximum benefit under ECLGS 5.0?
- Extra credit up to 20% of peak Q4 FY26 working capital use, capped at ₹100 Crore, 100% guaranteed, nil fee.
- How do I apply for ECLGS 5.0?
- 1. There is no separate application: ask your existing lender for the additional credit under ECLGS 5.0. 2. The lender sanctions it and claims the NCGTC guarantee; cover is given first come, first served. Apply at: NCGTC circulars (apply through your lender).
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