Emergency Credit Line Guarantee Scheme (ECLGS)
Origin and Evolution
The Emergency Credit Line Guarantee Scheme (ECLGS) was launched in May 2020 as a flagship component of the Aatmanirbhar Bharat Abhiyan — the government's economic relief package in response to the COVID-19 pandemic. ECLGS was designed to provide collateral-free, government-backed credit guarantees to enable banks and NBFCs to extend additional working capital loans to MSMEs and businesses whose revenues had been disrupted by the pandemic-induced lockdowns. The scheme has been operated through the National Credit Guarantee Trustee Company Limited (NCGTC), which issues the guarantee to member lending institutions (MLIs). ECLGS has gone through multiple iterations — ECLGS 1.0 (MSMEs), 2.0 (healthcare, specific stressed sectors), 3.0 (hospitality, civil aviation), and now 5.0 — each targeting a new shock to the economy.
- Launched: May 2020 under Aatmanirbhar Bharat Abhiyan
- Administered by: National Credit Guarantee Trustee Company Limited (NCGTC) under the Department of Financial Services, Ministry of Finance
- Cumulative guarantees under all ECLGS versions (as of January 2023): Rs 3.61 lakh crore, benefiting 1.19 crore borrowers
- ECLGS 1.0: Additional working capital loans up to 20% of outstanding credit for MSMEs and businesses
- Member Lending Institutions (MLIs): scheduled commercial banks, NBFCs, MFIs
- No fresh collateral required from borrowers under ECLGS framework
● Tracked since April 05, 2026 · last seen June 10, 2026 · updates as the daily brief publishes