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  • 19 August, 2022

  • 4 Min Read

Emergency Credit Line Guarantee Scheme

Emergency Credit Line Guarantee Scheme

The Union Cabinet has agreed to raise the cap on the Emergency Credit Line Guarantee Scheme (ECLGS).


  • The cap has been raised from Rs. 4.5 billion to Rs. 5 billion.
  • The additional funds are being set aside just for businesses in the hospitality industry and other associated industries through the scheme's expiration date of 31.03.2023.
  • Due to the tremendous disruptions that the COVID-19 epidemic has produced for the hospitality industry and related businesses, there has been an upsurge.

Impact of limit enhancement:

  • It will give businesses much-needed relief and aid the hospitality sector’s comeback.
  • Providing additional, low-cost loans to lending institutions of up to Rs. 50,000 crore as an incentive.
  • Allowing these commercial organisations to pay their operational obligations and carry on with their operations.

About Emergency Credit Line Guarantee Scheme (ECLGS)

  • Objective:
  • To assist enterprises, notably MSMEs, in meeting their operating liabilities and resuming operations in light of the distress brought on by the COVID-19 issue. Announced as part of the Atma Nirbhar Bharat Package in 2020.
  • Supplying Member Lending Institutions (MLIs) with a complete guarantee against any losses incurred by them as a result of borrowers' failure to repay the ECLGS funds.
  • Operational area of the Ministry of Finance's Department of Financial Services (DFS).


  • The overall cap for ECLGS was originally set at Rs 3 lakh crore but later increased to Rs 4.5 lakh crore.
  • Up to 5.8.2022, loans totaling about Rs. 3.67 lakh crore have been approved under ECLGS.

Source: Pib

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