Cabinet approves Emergency Credit Line Guarantee Scheme 5.0

• ECLGS 5.0 is a Union Cabinet–approved credit guarantee package routed through NCGTC to Member Lending Institutions (MLIs), targeting Rs 2,55,000 crore of additional credit flow (including Rs 5,000 crore earmarked for airlines) to cushion short-term liquidity stress arising from the West Asia situation.
• Provides 100% guarantee cover for MSMEs and 90% for non-MSMEs and airlines.
• Important for UPSC as a live case study in counter-cyclical credit policy, geopolitical-economic linkages, and the evolution of Aatmanirbhar Bharat credit instruments.