UPSC Prelims Practice Questions — Govt. approves fifth edition of credit guarantee scheme

Q1. Under the Emergency Credit Line Guarantee Scheme 5.0 (ECLGS 5.0), which of the following are correctly identified as eligible borrower categories?

  1. Micro, Small and Medium Enterprises with existing working capital limits whose loan accounts are 'standard' as on 31 March 2026.
  2. Non-MSME business enterprises with existing working capital limits whose loan accounts are 'standard' as on 31 March 2026.
  3. Scheduled passenger airline companies having outstanding credit facilities with Member Lending Institutions.
  4. Non-Banking Financial Companies seeking on-lending refinance for retail MSME portfolios under the scheme.
  • A. 1 and 3 only
  • B. 1, 2 and 3 only
  • C. 2, 3 and 4 only
  • D. 1, 2, 3 and 4

Q2. What is the total outlay (Government of India fund support) approved by the Union Cabinet for the Emergency Credit Line Guarantee Scheme 5.0 (ECLGS 5.0)?

  • A. ₹9,000 crore
  • B. ₹18,100 crore
  • C. ₹50,000 crore
  • D. ₹2,55,000 crore

Q3. Under the Emergency Credit Line Guarantee Scheme 5.0 (ECLGS 5.0), which one of the following borrower categories enjoys the highest percentage of credit guarantee coverage from NCGTC?

  • A. Scheduled passenger airline companies
  • B. Non-MSME business enterprises
  • C. Micro, Small and Medium Enterprises
  • D. Hospitality and tourism sector enterprises

Q4. The Emergency Credit Line Guarantee Scheme 5.0 (ECLGS 5.0) is operationalised through the National Credit Guarantee Trustee Company Limited (NCGTC), which functions under which one of the following?

  • A. Ministry of Micro, Small and Medium Enterprises
  • B. Reserve Bank of India
  • C. Department of Financial Services, Ministry of Finance
  • D. Small Industries Development Bank of India (SIDBI)