<p>New Delhi: The Union Cabinet on Tuesday approved Rs 2.55 lakh crore emergency credit line guarantee scheme to help businesses, especially MSMEs, tide over the challenges arising from the West Asia conflict.</p><p>The scheme aims to provide credit guarantee coverage of 100% for MSMEs and 90% for non-MSMEs.</p><p>The scheme includes Rs 5,000 crore credit support for the airlines sector.</p><p>Under the scheme, loans will be provided to businesses without any guarantee fees.</p>.Government planning to deploy SCI in Middle East to commence shipping services.<p>For the airline sector, the duration will be seven years from the date of first disbursement, including a moratorium of two years. For others, the duration will be five years, including a moratorium of one year.</p><p>MSMEs and non-MSMEs with existing working capital limits and scheduled passenger airlines having outstanding credit facilities, as of March 31, 2026, are eligible for the scheme.</p><p>“The scheme aims to enable businesses to tide over the challenges arising from the West Asia conflict. Additionally, this is expected to help businesses maintain their operations, protect jobs, and sustain supply chains,” it said.</p><p>The proposed credit guarantee scheme is a major step to help businesses, particularly MSMEs and the airline sector, to ensure their additional working capital needs are catered to by banks and other financial institutions.</p><p>By providing timely liquidity, the scheme will sustain the businesses. It will also promote uninterrupted domestic production and maintain resilience of the ecosystem.</p><p>The quantum of support includes additional credit up to 20% of peak working capital utilised during the January-March 2026 quarter (capped at Rs 100 crore). For airlines, it is up to 100% (capped at Rs 1,500 crore per borrower, subject to certain specific conditions).</p>
<p>New Delhi: The Union Cabinet on Tuesday approved Rs 2.55 lakh crore emergency credit line guarantee scheme to help businesses, especially MSMEs, tide over the challenges arising from the West Asia conflict.</p><p>The scheme aims to provide credit guarantee coverage of 100% for MSMEs and 90% for non-MSMEs.</p><p>The scheme includes Rs 5,000 crore credit support for the airlines sector.</p><p>Under the scheme, loans will be provided to businesses without any guarantee fees.</p>.Government planning to deploy SCI in Middle East to commence shipping services.<p>For the airline sector, the duration will be seven years from the date of first disbursement, including a moratorium of two years. For others, the duration will be five years, including a moratorium of one year.</p><p>MSMEs and non-MSMEs with existing working capital limits and scheduled passenger airlines having outstanding credit facilities, as of March 31, 2026, are eligible for the scheme.</p><p>“The scheme aims to enable businesses to tide over the challenges arising from the West Asia conflict. Additionally, this is expected to help businesses maintain their operations, protect jobs, and sustain supply chains,” it said.</p><p>The proposed credit guarantee scheme is a major step to help businesses, particularly MSMEs and the airline sector, to ensure their additional working capital needs are catered to by banks and other financial institutions.</p><p>By providing timely liquidity, the scheme will sustain the businesses. It will also promote uninterrupted domestic production and maintain resilience of the ecosystem.</p><p>The quantum of support includes additional credit up to 20% of peak working capital utilised during the January-March 2026 quarter (capped at Rs 100 crore). For airlines, it is up to 100% (capped at Rs 1,500 crore per borrower, subject to certain specific conditions).</p>