We are pleased to inform you that the Government of India, through the Ministry of Finance, has introduced the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, with the objective of providing additional financial support to eligible borrowers.

The Scheme is introduced as a targeted response to the exceptional circumstances caused by the West Asia crisis. It aims to support borrowers by encouraging MLIs to provide additional working capital term loans for business continuity and stability.

IndusInd Bank is pleased to offer this scheme to meet the emergency requirements of our eligible MSME/ Business Enterprise clients to help them to restart their business. Scheme details are as below:

Nature of Facility: Working Capital Term Loan (WCTL)

• All business enterprises including MSMEs having fund based working capital limits from the Member Lending Institutions (MLIs) as on 31.03.2026.
• The borrower’s credit facilities should be categorized as ‘standard’ (excluding SMA-2) as on 31.03.2026.
• Borrowers who have availed additional credit facility under Credit Guarantee Scheme for Exporters (CGSE) are not eligible under the extant scheme up to the limit already availed under CGSE.
• Non-MSMEs in the sectors as mentioned in NCGTC circular will be excluded from the purview of the Scheme.

The Scheme would be applicable to all loans sanctioned during the period from the date of issue of these guidelines by NCGTC up to 31.03.2027 or till guarantees for an amount of Rs. 2,55,000 crore are issued, whichever is earlier.

• MSMEs/Non MSMEs (except Airline sector): Up to 20% of the peak fund-based working capital outstanding during the fourth quarter of FY 2025–26 (i.e. between 01.01.2026 and 31.03.2026 both days inclusive).
• Airline Sector: Up to 100% of the total peak credit outstanding (fund-based and non-fund based) during the fourth quarter of FY 2025–26 (i.e. between 01.01.2026 and 31.03.2026 both days inclusive).

Maximum Loan Amount

• MSMEs/Non MSMEs (except Airline sector): ₹100 crore per borrower.
• Airline sector: ₹1,500 crore per borrower (Of this, any amount beyond ₹1,000 crore and up to ₹1,500 crore shall be permitted only with a proportionate equity contribution from the promoters/owners).

Guarantee Cover

• 100% on Amount in Default for MSMEs.
• 90% on Amount in Default for non-MSMEs as well as Airline sector.

• For MSMEs/Non MSMEs (except Airline sector): 5 years from the date of first disbursement including moratorium of 1 year.
• For Airline sector: 7 years from the date of first disbursement including moratorium of 2 years.

Prepayment Penalty: NIL

Processing Fee: NIL

• The MLIs shall ensure creation of charge on existing securities (primary as well as collateral) and on assets created out of the loan under ECLGS 5.0, within 90 days from the date of first disbursement.
• However, for airline sector, additional security shall be obtained. Please refer to the guidelines shared by NCGTC in this regard.

The Scheme is subject to revision as per NCGTC guidelines. Please refer to Operational Guidelines and FAQs issued by NCGTC from time to time (https://www.ncgtc.in/en/product-details/ECLGS5/Emergency-Credit-Line-Guarantee-Scheme-(ECLGS)-5.0).

Please contact your relationship manager for further details.

The above extract is a summary and may not cover all aspects of the scheme, including sectoral restrictions, pricing caps, operational requirements, and documentation conditions. For complete terms, reference must be made to NCGTC’s official guidelines and FAQs (www.ncgtc.in).