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Govt. approves fifth edition of credit guarantee scheme, extends cover to airlines


For airlines, the loans can be for up to 100% of their peak working capital, but this is capped at ₹1,500 crore per borrower, subject to satisfying certain specific conditions. File photo for representational purposes only.
| Photo Credit: Reuters

In response to the crisis in West Asia, the Union Cabinet on Tuesday (May 5, 2026) approved the fifth edition of its Emergency Credit Line Guarantee Scheme, under which it will provide additional credit guarantees to micro, small and medium enterprises (MSMEs) and non-MSMEs, including airline companies. 

The total outlay of the scheme is expected to be ₹18,100 crore, and it is expected to generate additional credit flows worth ₹2.25 lakh crore, the government said. 



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