The ECLGS 5.0 scheme will ensure financial assistance for MSMEs by extending additional credit facilities backed by the Centre’s guarantee, says Minister for NRI Empowerment and Relations Kondapalli Srinivas.
| Photo Credit: Special Arrangemnt
Andhra Pradesh Minister for MSMEs, SERP, and NRI Empowerment Relations, Kondapalli Srinivas, has welcomed the Centre’s decision to introduce the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 to support the industries affected by the ongoing conflict in West Asia.
In a statement issued on Friday, the Minister said the scheme would ensure crucial financial assistance for micro, small and medium enterprises (MSMEs) by extending additional credit facilities backed by a Central government’s guarantee.
He said the initiative would help industries overcome liquidity stress and strengthen their operations amid the global uncertainty.
Andhra Pradesh currently has around 20.77 lakh MSME units. Of these, about 4.98 lakh units, constituting nearly 24 per cent, are engaged in the manufacturing sector, while nearly 10 lakh units, accounting for 48 per cent, operate in the services sector. Another 5.74 lakh units, representing 28 per cent, are involved in business and trading activities.
Mr. Srinivas said the ECLGS 5.0 scheme offers 100% credit guarantee coverage for MSMEs in the event of loan default, while non-MSME sectors would receive up to 90% guarantee coverage.
Eligible borrowers can avail of additional working capital assistance of up to 20% of the highest working capital utilised during the fourth quarter of the 2025-26 financial year. Under the scheme, each borrower can receive additional loans up to ₹100 crore. The scheme will apply only to loans sanctioned before March 31, 2027 and disbursed by June 30, 2027, he said.
The Minister clarified that only borrowers maintaining regular repayment records with banks and financial institutions would be eligible for the scheme.
He added that the National Credit Guarantee Trustee Company Limited (NCGTC) would independently implement and monitor the programme. Mr Srinivas urged MSMEs affected by the West Asian crisis to utilise the facility to strengthen their businesses.
Published – May 22, 2026 07:48 pm IST
