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Cabinet Clears ECLGS 5.0 With ₹18,100 Crore Outlay

7 May 20261 min read
ECONOMYCabinet ClearsECLGS 5.0 With₹18,100 CroreOutlay7 May 2026safalsetu.com

Why in the news

The Cabinet gave its nod to the fifth round of the Emergency Credit Line Guarantee Scheme, set at an outlay of ₹18,100 crore, to cushion firms from the West Asia crisis.

Key facts

  • Scheme: ECLGS 5.0, outlay ₹18,100 crore.
  • Purpose: liquidity support for MSMEs hit by the West Asia crisis.
  • Guarantee cover via NCGTC: 100% for MSMEs, 90% for non-MSMEs and airlines.
  • Eligibility: loan accounts must be standard as of 31 March 2026.

Significance

  • Aims to strengthen credit flow and keep businesses running during economic stress.

Exam angle

  • Outlay figure: ₹18,100 crore.
  • Guarantee provider: NCGTC.
  • Related terms: standard account, liquidity support, MSME.

Test yourself

1. What outlay did the Union Cabinet approve for ECLGS 5.0?

The notes state an outlay of ₹18,100 crore.

2. Which crisis prompted ECLGS 5.0 liquidity support for MSMEs?

ECLGS 5.0 targets MSMEs affected by the West Asia crisis.

3. Under ECLGS 5.0, what guarantee coverage do non-MSMEs and airlines receive?

Non-MSMEs and airlines get 90%; MSMEs get 100%.

This topic is part of Daily Current Affairs 7 May 2026 (29 topics).

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