CHEMEXCIL
Basic Chemicals, Cosmetics & Dyes Export Promotion Council

(Set-up by Ministry of Commerce and Industry, Govt of India)

Jhansi Castle, 4^th floor, 7-Cooperage Road,   Mumbai - 400 001. India.

Tel:  +91-22- 69821200

Email : info@chemexcil.in Web : https://chemexcil.in

EPC:ROKOL:PIB:NCGTCL:ECLGS5:174                                                                08^th  May 2026.

To

ALL THE MEMBERS OF THE COUNCIL 

Dear Members,

This is to inform that the Union Cabinet, chaired by Hon’ble Prime Minister Shri Narendra Modi, has approved the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 to provide additional working capital support to businesses affected by the prevailing West Asia situation.

Under the scheme, credit guarantee coverage will be provided through National Credit Guarantee Trustee Company Limited (NCGTC) to Member Lending Institutions (MLIs) for extending additional credit support to eligible borrowers.

The scheme aims to facilitate additional credit flow of approximately Rs. 2,55,000 crore, including Rs. 5,000 crore earmarked for the airline sector. It is expected to provide timely liquidity support to businesses facing temporary financial stress arising from global disruptions and supply chain challenges. The initiative is aimed at helping enterprises sustain operations, protect employment, and maintain continuity in domestic production and exports.

Key Features:

Eligible Borrowers

• MSMEs and Non-MSMEs having existing working capital limits and outstanding credit facilities as on 31st March 2026, with standard accounts.
• Scheduled passenger airlines with outstanding credit facilities as on 31st March 2026.

Guarantee Coverage

• 100% guarantee coverage for MSMEs.
• 90% guarantee coverage for Non-MSMEs and the airline sector.

Guarantee Fee

• Nil.

Quantum of Additional Credit Support

• Additional credit up to 20% of peak working capital utilised during Q4 FY 2025-26, subject to a cap of Rs. 100 crore.
• For airlines, additional credit support up to 100%, capped at Rs. 1,500 crore per borrower, subject to specified conditions.

Tenor of Loan

For MSMEs and Non-MSMEs (except airlines)

• 5 years from the date of first disbursement, including a moratorium of 1 year.

For Airline Sector

• 7 years from the date of first disbursement, including a moratorium of 2 years.

Duration of the Scheme

• Applicable to all loans sanctioned from the date of issue of guidelines by NCGTC up to 31st March 2027.

This circular is issued for the information of all members.

With Kind Regards,

 Vishal S. Ganju

Executive Director

CHEMEXCIL

Encl :   PIB dtd. 05.05.2026