Centre extends credit support to businesses under ECLGS 5.0

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Minister for MSMEs Kondapalli Srinivas urges eligible businesses to approach their lending institutions and make use of the facility. | Photo Credit: File Photo

Businesses in Andhra Pradesh affected by the ongoing crisis in West Asia have received financial support of ₹1,280.43 crore under the Central government's Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, benefiting 3,606 loan accounts across the State, Minister for MSME Kondapalli Srinivas said on Tuesday.

Under ECLGS 5.0, the Central government provides 100% guarantee for loans extended to the Micro, Small and Medium Enterprises (MSMEs), while other eligible business entities receive a 90% guarantee. The scheme is overseen by the National Credit Guarantee Trustee Company Limited (NCGTC).

Mr. Srinivas said borrowers with 'standard' loan accounts were eligible to avail additional credit of up to 20% of the working capital utilised during the fourth quarter of the 2025-26 financial year. However, the maximum additional loan that can be sanctioned to an individual borrower is capped at ₹100 crore.

He said loans under the scheme must be sanctioned on or before March 31, 2027, while the disbursement of the sanctioned amount should be completed by June 30, 2027.

Mr. Srinivas said the scheme was intended to ensure uninterrupted business operations, safeguard employment and improve liquidity for enterprises affected by global economic uncertainties.

He urged eligible businesses, particularly the MSMEs, to approach their lending institutions and make use of the facility to strengthen their operations and sustain growth during the current challenging economic environment.