BANKING & FINANCE
Banking Affairs
ECLGS 5.0 Approved with ₹18,100 Crore Outlay to Support MSMEs and Airlines
The Union Cabinet has greenlit the fifth iteration of the Emergency Credit Line Guarantee Scheme (ECLGS 5.0) to provide liquidity support.
The scheme offers a 100% credit guarantee for MSMEs and a 90% guarantee for other sectors, including the airline industry.
The total outlay for this phase is ₹18,100 crore, with a specific allocation of ₹5,000 crore dedicated to the aviation sector.
Loan Structure: Borrowers can access additional credit up to 20% of their peak working capital, with a loan cap of ₹100 crore per borrower (higher for airlines).
The scheme's validity has been extended until March 31, 2027, to ensure continued credit flow.
The scheme offers a 100% credit guarantee for MSMEs and a 90% guarantee for other sectors, including the airline industry.
The total outlay for this phase is ₹18,100 crore, with a specific allocation of ₹5,000 crore dedicated to the aviation sector.
Loan Structure: Borrowers can access additional credit up to 20% of their peak working capital, with a loan cap of ₹100 crore per borrower (higher for airlines).
The scheme's validity has been extended until March 31, 2027, to ensure continued credit flow.
Key Facts / Static GK
ECLGS: Emergency Credit Line Guarantee Scheme
NCGTC: National Credit Guarantee Trustee Company Limited (Provider of the guarantee)
Validity: Till 31 March 2027
Interest Rate Cap (Banks): 9%
NCGTC: National Credit Guarantee Trustee Company Limited (Provider of the guarantee)
Validity: Till 31 March 2027
Interest Rate Cap (Banks): 9%
Practice Quiz — 11 May 2026
Q1. Regarding the Jan Suraksha schemes, which of the following statements is/are correct as of May 2026?
Answer: (B) The Pradhan Mantri Suraksha Bima Yojana (PMSBY) has recorded the highest enrolments among the three. — Statement B is correct as PMSBY has 58.09 crore enrolments. Statement A is incorrect (launched in 2015). Statement C is incorrect (APY entry age is 18-40). Statement D is incorrect (PMJJBY coverage is ₹2 lakh).
Q2. Where will the new GaN-based semiconductor fabrication facility by Crystal Matrix Ltd be located?
Answer: (C) Dholera, Gujarat — Crystal Matrix Ltd will set up its GaN (Gallium Nitride) based semiconductor fabrication facility in Dholera, Gujarat.
Q3. What is the new Fair and Remunerative Price (FRP) for sugarcane approved for the 2026-27 season?
Answer: (D) ₹365 per quintal — The CCEA has approved a new FRP of ₹365 per quintal for the 2026-27 season, up from ₹355.
Q4. Which of the following represents the '5F' vision under the newly launched Mission for Cotton Productivity?
Answer: (A) Farm, Fibre, Factory, Fashion, Foreign — The 5F vision stands for Farm → Fibre → Factory → Fashion → Foreign.
Q5. What is the maximum credit guarantee percentage provided to MSMEs under the ECLGS 5.0 scheme?
Answer: (E) 100% — Under ECLGS 5.0, MSMEs are eligible for a 100% credit guarantee, while non-MSMEs and airlines receive a 90% guarantee.
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