ECLGS 5.0 – Emergency Credit Line Guarantee Scheme

ECLGS 5.0 is a Government of India-backed scheme administered by the National Credit Guarantee Trustee Company (NCGTC) to provide immediate working capital support to MSMEs, Non-MSMEs, and scheduled passenger airline enterprises facing liquidity stress due to the West Asia crisis. The scheme allows eligible borrowers with existing live, standard credit facilities (as on 31 March 2026) to obtain additional credit from their current lender without pledging any additional collateral. No guarantee fee is charged to the borrower, and interest rates are capped by the scheme. The repayment structure includes a moratorium – 1 year for MSMEs/Non-MSMEs (total tenure up to 5 years) and 2 years for airlines (total tenure up to 7 years). The maximum additional credit is 20% of the peak working capital outstanding during Q4 FY 2025–26, subject to a cap of ₹100 crore for MSMEs and Non-MSMEs. For airlines, the additional credit can be up to 100% of peak total credit outstanding, capped at ₹1,500 crore.

• Collateral-free additional working capital up to ₹100 crore for MSMEs/Non-MSMEs, and up to ₹1,500 crore for airlines.
• No guarantee fee; interest rates capped by the scheme.
• Tenure up to 5 years with 1-year moratorium (MSMEs/Non-MSMEs) or up to 7 years with 2-year moratorium (airlines).
• Available to borrowers with standard credit facilities as on 31 March 2026.
• Apply through your existing lender or via the Jansamarth portal (jansamarth.in).
• Government-backed guarantee by NCGTC.

The scheme is open to MSMEs, Non-MSMEs, and scheduled passenger airline enterprises that have a live, standard (non-NPA) credit facility with any bank, Regional Rural Bank (RRB), or NBFC as on 31 March 2026. Borrowers must have been impacted by short-term liquidity stress arising from the West Asia crisis. There is no requirement for DPIIT or MSME registration specifically for Non-MSMEs, though MSMEs should have their classification as per Udyam registration. The additional credit is accessed only through the borrower's existing lending institution.

ECLGS 5.0 – Emergency Credit Line Guarantee Scheme is open to startups at any stage. It is open to startups registered anywhere in India.

ECLGS 5.0 – Emergency Credit Line Guarantee Scheme accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.

Credit Amount:

• MSMEs/Non-MSMEs: Up to 20% of peak working capital outstanding in Q4 FY 2025–26, capped at ₹100 crore.
• Airlines: Up to 100% of peak total credit outstanding, capped at ₹1,500 crore.

Collateral: No additional collateral is required. The credit is guaranteed by NCGTC under the Government of India's ECLGS.

Cost: No guarantee fee is charged to the borrower. Interest rates are capped as per scheme guidelines.

Tenure & Moratorium:

• MSMEs/Non-MSMEs: Up to 5 years with a 1-year principal moratorium.
• Airlines: Up to 7 years with a 2-year principal moratorium.

Use of Funds: The additional credit is meant for working capital needs such as inventory, operations, payables, and short-term liquidity gaps.

ECLGS 5.0 – Emergency Credit Line Guarantee Scheme is offered by National Credit Guarantee Trustee Company (NCGTC), a government body. As a government-backed debt / loan, it is publicly funded and open to eligible startups across India. You can verify current details and timelines on the provider's official website before applying.

Applications are processed through the borrower's existing lender or via the Jansamarth portal (jansamarth.in). The lender verifies the borrower's eligibility based on scheme criteria, including the status of the existing credit facility (standard as on 31 March 2026) and the impact of the West Asia crisis. Once eligibility is confirmed, the lender sanctions the additional credit under the NCGTC guarantee cover. No separate selection committee is involved; approval follows the lender's standard credit assessment process.

Before you apply to ECLGS 5.0 – Emergency Credit Line Guarantee Scheme, keep the following documents ready:

• A pitch deck or short business plan describing the problem, product and traction
• Company registration documents and PAN
• Founder identification (PAN / Aadhaar) and brief profiles
• Recent financial statements or projections
• Product details — a demo, prototype or working link if available

Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.

ECLGS 5.0 – Emergency Credit Line Guarantee Scheme is best suited for startups in India seeking non-dilutive funding of ₹10Cr. If that describes your startup, review the eligibility criteria above before applying.