The Union Cabinet approved the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 in May 2026 to support businesses affected by the West Asia crisis. Under the approved scheme, what credit guarantee coverage is provided for eligible MSMEs?
100%
The Emergency Credit Line Guarantee Scheme (ECLGS) gives lenders a government-backed guarantee on additional credit, so that banks lend to businesses hit by a shock without fearing losses. The guarantee is given through the National Credit Guarantee Trustee Company (NCGTC).
Step 1 — On 5 May 2026, the Union Cabinet approved ECLGS 5.0 to support businesses affected by the West Asia crisis, allowing additional credit of up to 20% of peak working capital used in Q4 FY26, capped at ₹100 crore.
Step 2 — The approved guarantee coverage was 100% for MSMEs and 90% for non-MSMEs and the airline sector, with no guarantee fee.
Step 3 — 90% is the coverage for non-MSMEs and airlines, not MSMEs; 95% and 80% do not appear in the scheme at all.
100% option is correct.
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