State Bank of India has emerged as the leading lender under the government's ECLGS 5.0 scheme, sanctioning ₹32,750 crore in loans according to Chairman CS Setty. As reported by NDTV Profit, of this sanctioned amount, ₹25,440 crore has already been disbursed to eligible borrowers. The bank's substantial participation reflects the scheme's strong appeal to public sector banks for supporting businesses during the current economic environment.
Public sector banks have demonstrated significant commitment to the ECLGS 5.0 scheme, with multiple institutions showing substantial participation levels. According to NDTV Profit reports, Punjab National Bank has sanctioned ₹15,856 crore and disbursed ₹12,000 crore of loans, while Union Bank of India has sanctioned ₹12,000 crore and disbursed ₹10,000 crore. Canara Bank has sanctioned ₹11,000 crore and Bank of Baroda has disbursed ₹11,000 crore under the scheme.
Private sector banks have also participated actively in the ECLGS 5.0 scheme, with notable disbursements across different institutions. As reported by NDTV Profit, Kotak Mahindra Bank has disbursed ₹3,000 crore while RBL Bank has disbursed ₹200 crore. Federal Bank has sanctioned and disbursed between ₹1,800-₹2,000 crore under the scheme. Indian Overseas Bank has sanctioned and disbursed ₹2,600 crore and targets a total exposure of ₹4,500 crore.
The ECLGS 5.0 scheme provides 100% collateral-free guaranteed credit for MSMEs and 90% for non-MSMEs/airlines through member lending institutions. According to NDTV Profit reports, the scheme offers loans up to ₹100 crore for general sectors and ₹1,500 crore for airlines. In July, the government reported that the scheme had issued over 4.1 lakh guarantees and over ₹1.55 lakh crore in loan guarantees, with 98% of guarantees benefiting MSMEs.
The scheme is helping banks gain market share in the mid-corporate segment, as noted by HDFC Bank MD and CEO Sashidhar Jagdishan. According to NDTV Profit reports, the ECLGS 5.0 scheme is particularly beneficial for businesses managing short-term liquidity mismatches during the current economic environment. The substantial participation across both public and private sector banks indicates strong institutional confidence in the scheme's effectiveness and relevance for supporting business continuity.
