ECLGS 5.0: MSMEs can get additional credit up to 20% of peak working capital, with 100% guarantee cover
In a Rajya Sabha reply the Government set out the Emergency Credit Line Guarantee Scheme 5.0, introduced in May 2026, and SIDBI’s direct-credit growth.
In 30 seconds
- Additional credit up to 20% of the peak fund-based working capital outstanding in Q4 of FY 2025-26.
- 100% guarantee coverage to lenders on the amount in default for this additional credit to eligible MSMEs.
- Additional credit flow of ₹2,55,000 crore envisaged for MSMEs, non-MSMEs and scheduled passenger airlines.
- SIDBI opened 71 new branches between 1 April 2024 and 29 July 2026.
हिंदी में सार
ECLGS 5.0 के तहत MSME को FY 2025-26 की चौथी तिमाही की peak working capital के 20% तक अतिरिक्त कर्ज़ मिल सकता है, जिस पर कर्ज़ देने वाली संस्था को 100% गारंटी कवर है। योजना में कुल ₹2.55 लाख करोड़ के अतिरिक्त कर्ज़ का अनुमान है।
ECLGS 5.0 in brief
The Government introduced the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 in May 2026. Under it, MSMEs are eligible for additional credit of up to 20% of their peak fund-based working capital outstanding during the fourth quarter of FY 2025-26.
The scheme gives Member Lending Institutions 100% guarantee coverage towards the amount in default for this additional credit facility extended to eligible MSME borrowers. For scheduled passenger airlines the coverage is 90%, and they are eligible for additional credit up to 100% of total peak credit outstanding (fund-based and non-fund-based) in the same quarter.
SIDBI’s numbers
| As on | Direct credit outstanding | Refinance outstanding |
|---|---|---|
| 31 March 2025 | ₹37,781 crore | ₹3,85,327 crore |
| 31 March 2026 | ₹51,687 crore | ₹4,50,571 crore |
| Growth | 36.8% | 16.9% |
Other SIDBI measures mentioned
- Co-lending with NBFCs for smaller MSMEs, especially new borrowers; co-lending with Regional Rural Banks begun in FY 2025-26.
- The Prayaas Scheme for informal micro-enterprises.
- The GST Sahay app for invoice-based small-value credit to micro enterprises.
The reply does not give the application process or the last date under ECLGS 5.0; ask your lending bank for the scheme terms.
Published 4 August 2026. Updated 2 October 2026. This report is for general information and is not professional advice. Read the source document before acting on it.