State Bank of India may extend credit facilities worth ₹70,000 crore to ₹80,000 crore under the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, Chairman C S Setty said on Thursday, as per PTI reports.
The estimate follows the release of detailed operational guidelines for the scheme. Setty said the bank has identified its eligible customer base after clarity emerged on sectors and borrowers covered under the latest package.
He said the scheme is optional for borrowers and is intended to provide additional liquidity support to businesses facing pressure linked to the ongoing West Asia conflict.
The Union Cabinet approved ECLGS 5.0 earlier this week with a total outlay of ₹2.55 lakh crore. The scheme is for supporting businesses affected by higher costs, supply disruptions, and other indirect effects arising from geopolitical tensions in West Asia.
Under the package, ₹5,000 crore has been set aside for airlines dealing with short-term liquidity stress. The remaining amount will be available for MSMEs and selected non-MSME borrowers.
Government officials said the overall scheme size was finalised after assessing existing bank exposure and expected funding demand from impacted sectors.
MSMEs will be eligible for additional credit of up to 20% of peak working capital utilised during the January-March quarter of FY26, subject to a cap of ₹100 crore.
For airlines, the scheme permits loans equal to 100% of working capital requirements, with a maximum limit of ₹1,500 crore per borrower.
The repayment tenure for MSME loans has been fixed at 5 years, including a 1-year moratorium. Airlines will get a 7-year repayment period with a 2-year moratorium due to the sector’s longer recovery cycle.
Setty said banks expect operational issues related to implementation, including approvals and digital integration through the Jan Samarth portal, to be resolved within 8 to 10 days.
According to SBI’s internal assessment, over 1.1 crore beneficiaries across the banking system could potentially qualify under ECLGS 5.0. SBI Research estimates that nearly 45% of MSME loan accounts may become eligible for additional credit support.
Sectors including power, telecom, sugar, defence, horticulture and educational institutions have been excluded from the scheme as they were considered less affected by the West Asia situation.
ECLGS 5.0 will allow eligible businesses to access government-backed credit support through banks and financial institutions. SBI expects a large section of its borrower base to qualify under the scheme.
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Published on: May 8, 2026, 12:16 PM IST
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