Cabinet clears Rs 2.55 lakh crore ECLGS 5.0 to backstop MSMEs, hospitality and travel hit by West Asia war
ECLGS 5.0 extends 100% credit guarantees on up to Rs 100 crore loans per borrower, with interest capped at 9-13% and guarantee fees waived. Scheme runs until March 31, 2027 and targets MSMEs, non-MSMEs, airlines, hospitality, travel and tourism — sectors central to retail demand and consumer-facing supply chains.
Cabinet approved ECLGS 5.0, a Rs 2.55 lakh crore credit guarantee scheme for MSMEs, non-MSMEs and airlines, including hospitality, travel and tourism sectors stressed by West Asia conflict, with capped interest rates and waived guarantee fees.
Why this matters
ECLGS 5.0 revives India's pandemic-era credit guarantee playbook, this time to cushion travel, hospitality and MSME borrowers exposed to West Asia conflict shocks and weakening consumer-facing cash flows.
Retail-company signals steady at 218 over the last 90 days, indicating stable sector news flow.