What percentage of credit guarantee cover does ECLGS 5.0 provide for MSMEs and non-MSMEs?

The scheme provides full (100%) credit guarantee cover for MSMEs and 90% cover for non-MSMEs, including airlines.

How much credit is allocated specifically for airlines under the new scheme?

The credit scheme will include Rs 5,000 crore for airlines.

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Credit Boost for Businesses: Rs 2.55 Lakh Crore Unlocked

Q: What is the total additional credit flow targeted under ECLGS 5.0?

The Union Cabinet approved an additional credit flow target of Rs 2.55 lakh crore under the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0.

6 May

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Summary

Union Cabinet approved Rs 2.55 lakh crore under ECLGS 5.0.
Scheme offers 100% credit cover for MSMEs, 90% for others.
Airlines included, with Rs 5,000 crore allocated.

Credit Boost for Businesses: Rs 2.55 Lakh Crore Unlocked

The Union Cabinet has given its approval for an enhanced credit flow target of Rs 2.55 lakh crore under the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0. This significant financial injection aims to bolster businesses facing short-term liquidity challenges. The scheme is structured to provide robust support, offering a full 100% credit guarantee cover for Micro, Small, and Medium Enterprises (MSMEs).

Furthermore, non-MSME entities, notably including the airline sector, will receive a 90% credit guarantee cover. A specific allocation of Rs 5,000 crore has been designated for airlines to help them navigate current economic pressures. The National Credit Guarantee Trustee Company Limited (NCGTC) will extend these guarantees to Member Lending Institutions against potential defaults.

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