SBI to Provide Rs 80,000 Crore Loans Under ECLGS 5.0 Amid West Asia Crisis

SBI's Initiative to Support Affected Businesses

The State Bank of India (SBI), the country's largest public sector bank, is preparing to disburse loans amounting to Rs 80,000 crore through the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0. This initiative, introduced by the central government, aims to assist businesses impacted by the ongoing crisis in West Asia. SBI's Chairman, C S Setty, stated, 'We are aware of our eligible customer base, as the guidelines for eligibility have been established. We anticipate providing credit facilities ranging from Rs 70,000 to 80,000 crore under the ECLGS scheme.'

The Union Cabinet has sanctioned the ECLGS 5.0 to offer credit guarantee coverage to qualifying borrowers, helping them manage short-term liquidity challenges due to the West Asia situation. This scheme will cater to eligible borrowers, including MSMEs, non-MSMEs with existing working capital limits, and scheduled passenger airlines that had outstanding credit as of March 31, 2026. A crucial requirement is that these accounts must be classified as standard to be eligible for the additional credit.

Under this scheme, the credit guarantee coverage will be substantial, providing 100% coverage for MSMEs and 90% for non-MSMEs and the airline sector. Importantly, this guarantee will be offered without any associated fees, making it more accessible and appealing for borrowers seeking funds. The guarantees will be facilitated through Member Lending Institutions by the National Credit Guarantee Trustee Company Limited.

Financial Services Secretary M. Nagaraju highlighted that the government anticipates the West Asia conflict to have widespread repercussions across various industries, with only a few sectors likely to remain unaffected.