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Sarkari Yojana
Government Launches ECLGS 5.0 to Boost SME Credit
✍️ TRIPURA STAR NEWS
🗓 05 Sep 2026, 02:04 PM
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The Ministry of Finance has rolled out the fifth iteration of the Emergency Credit Line Guarantee Scheme, aiming to provide guaranteed credit to small and medium enterprises across India.
The Ministry of Finance announced the launch of Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 on Thursday, with Finance Minister Nirmala Sitharaman presenting the scheme at a virtual press conference.
Under ECLGS 5.0, banks will be able to lend up to ₹10 lakh per SME, with the government guaranteeing up to 75% of the loan amount. The scheme also offers a reduced interest rate of 6% for the first year and a repayment period of 5 years.
The government estimates that the scheme will support around 3.5 lakh SMEs, particularly in manufacturing, agriculture and digital services, and could generate up to 1.2 million jobs by 2025.
SMEs can apply through their existing banks by submitting the required documentation, and the Ministry will provide a dedicated portal for tracking the status of applications.
Under ECLGS 5.0, banks will be able to lend up to ₹10 lakh per SME, with the government guaranteeing up to 75% of the loan amount. The scheme also offers a reduced interest rate of 6% for the first year and a repayment period of 5 years.
The government estimates that the scheme will support around 3.5 lakh SMEs, particularly in manufacturing, agriculture and digital services, and could generate up to 1.2 million jobs by 2025.
SMEs can apply through their existing banks by submitting the required documentation, and the Ministry will provide a dedicated portal for tracking the status of applications.