Government Launches Emergency Credit Scheme to Boost MSME and Airline Sectors

The government has introduced the Emergency Credit Line Guarantee Scheme with Rs 18,100 crore to support MSMEs and airlines hit by the West Asia conflict. The initiative, targeting relief and continuity for these sectors, aims to inject additional credit flow and safeguard jobs through Member Lending Institutions.

The government has unveiled a new Emergency Credit Line Guarantee Scheme (ECLGS) worth Rs 18,100 crore to support MSMEs and airlines affected by the West Asia conflict. This move is designed to channel a credit flow of Rs 2.55 lakh crore, offering particular assistance of Rs 5,000 crore to the airline industry.

Information and Broadcasting Minister Ashwini Vaishnaw announced that the ECLGS 5.0 aims to address financial stress in MSMEs and airlines. It allows passenger airlines to claim up to 100 per cent of peak credit, and institutions can receive up to 20 per cent of their working capital needs.

This scheme seeks to provide timely liquidity, maintain operational continuity, and prevent job losses. It promises credit guarantee coverage up to 100 per cent for MSMEs and 90 per cent for non-MSMEs and airlines. The tenure for loans extends up to seven years for the airline sector and five years for others, supporting resilience despite the ongoing crisis.