Under the scheme, the government will provide of 100% for MSMEs and 90% for non-MSMEs and the airline sector to lenders through the National Credit Guarantee Trustee Company Limited (NCGTC). The guarantee will cover defaults on additional credit extended to eligible borrowers.
The scheme will be available to MSMEs, non-MSMEs with existing working capital limits, and scheduled passenger airlines with outstanding credit facilities as of March 31, 2026, provided their accounts are standard.
Eligible borrowers can avail additional credit of up to 20% of peak working capital utilised in the fourth quarter of FY26, capped at ₹100 crore. For airlines, the cap is up to ₹1,500 crore per borrower, subject to conditions.
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approves Emergency Credit Line Guarantee Scheme 5.0
-It aims to provide credit guarantee support via National Credit Guarantee Trustee Company Limited to lenders for extending additional credit to eligible businesses amid the situation
— Dhirendra Ojha (@DG_PIB)
Loans under the scheme will carry no guarantee fee. The tenure for MSMEs and non-MSMEs will be five years, including a one-year moratorium. For airlines, the tenure will be seven years with a two-year moratorium.
The scheme will apply to loans sanctioned from the date of notification till March 31, 2027, with the guarantee cover aligned to the loan tenure.
The government said the scheme is aimed at helping businesses maintain operations, protect jobs, and sustain supply chains amid global disruptions. It is expected to provide timely liquidity support and ensure continuity in domestic production, particularly for MSMEs and the aviation sector.
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