Mumbai, May 6 -- The Union Cabinet has approved the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 to provide liquidity support to businesses affected by the West Asia crisis.

Under the scheme, National Credit Guarantee Trustee Company Limited (NCGTC) will offer credit guarantee coverage to Member Lending Institutions. MSMEs will receive 100% guarantee coverage, while non-MSMEs and the airline sector will get 90% coverage on additional loans extended to eligible borrowers.

The scheme covers MSMEs, non-MSMEs, and scheduled passenger airlines with existing loans classified as standard as of March 31, 2026. Borrowers can avail additional credit of up to 20% of their peak working capital used in the fourth quarter of FY26, capped at Rs....