Coimbatore MSMEs Welcome ECLGS 5.0, Seek Higher Credit Allocation

He said the launch of ECLGS 5.0 comes at a crucial time, particularly as businesses face challenges arising from the ongoing West Asia crisis, reported The Hindu. ECLGS 5.0 Offers Collateral-Free Credit Support Under the scheme, both MSME and non-MSME sectors are eligible for support, with loan sanctions available until March 31 next year. The loans will carry a tenure of up to five years, including a one-year moratorium on principal repayment. The scheme allows additional credit of up to 20 percent of peak working capital as of the fourth quarter of FY26, subject to a maximum cap of Rs 100 crore per borrower. The loans will be fully collateral-free and will not attract any guarantee fee. Palanisamy said the scheme, along with the Textile Expansion and Employment Scheme (TEEM initiative) and the government’s Mission for Cotton Productivity, which received an allocation of Rs 5,659.22 crore in the recent Union Budget, is expected to boost the textile sector’s growth and improve competitiveness in domestic and global markets. Industry Seeks Higher Allocation For MSMEs Coimbatore District Small Industries Association President M. Karthikeyan said the scheme would help businesses address cash flow pressures during challenging market conditions. He added that while the government has earmarked Rs 2.55 lakh crore under the scheme, the association has urged Prime Minister Narendra Modi to increase the allocation to Rs 6.5 lakh crore, citing the needs of India’s 7.34 crore MSMEs. (KNN Bureau)