{"id":25147,"date":"2026-04-28T14:40:28","date_gmt":"2026-04-28T09:10:28","guid":{"rendered":"https:\/\/trending.niftytrader.in\/?p=25147"},"modified":"2026-04-28T14:42:23","modified_gmt":"2026-04-28T09:12:23","slug":"finance-ministry-prepares-rs-2-5-lakh","status":"publish","type":"post","link":"https:\/\/www.niftytrader.in\/markets\/finance-ministry-prepares-rs-2-5-lakh\/","title":{"rendered":"Finance Ministry Prepares Rs. 2.5 Lakh Crore Credit Guarantee Note for Cabinet"},"content":{"rendered":"<p data-section-id=\"e1rp6v\" data-start=\"356\" data-end=\"439\"><span role=\"text\">EFC Clearance Moves MSME and Aviation Support Scheme to Final Approval Stage<\/span><\/p>\n<p data-start=\"441\" data-end=\"748\"><span class=\"hover:entity-accent entity-underline inline cursor-pointer align-baseline\"><span class=\"whitespace-normal\">Ministry of Finance India<\/span><\/span> has prepared a Cabinet note for a \u20b92.5 lakh crore credit guarantee scheme after the Expenditure Finance Committee (EFC) cleared the proposal, according to a senior government official familiar with the process. Cabinet approval is now the final step before rollout.<\/p>\n<p data-start=\"750\" data-end=\"894\">The EFC clearance follows inter-ministerial consultations, a standard step for large fiscal proposals before they are placed before the Cabinet.<\/p>\n<p data-start=\"1327\" data-end=\"1520\">Also Check :<\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><a href=\"https:\/\/www.niftytrader.in\/nifty50-contributors\">Nifty 50<\/a><\/li>\n<li><a href=\"https:\/\/www.niftytrader.in\/nifty-bank-contributors\">Bank Nifty<\/a><\/li>\n<li><a href=\"https:\/\/www.niftytrader.in\/stocks-price\/bse\">Sensex<\/a><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 data-section-id=\"v1tb2j\" data-start=\"901\" data-end=\"978\"><span role=\"text\">ECLGS Benchmark: \u20b93.6 Lakh Crore Sanctioned Across 1.2 Crore Borrowers<\/span><\/h2>\n<p data-start=\"980\" data-end=\"1093\">The proposed scheme is expected to follow the structure of the <span class=\"hover:entity-accent entity-underline inline cursor-pointer align-baseline\"><span class=\"whitespace-normal\">Emergency Credit Line Guarantee Scheme<\/span><\/span> (ECLGS).<\/p>\n<p data-start=\"1095\" data-end=\"1131\">According to government disclosures:<\/p>\n<ul data-start=\"1133\" data-end=\"1210\">\n<li data-section-id=\"as23lr\" data-start=\"1133\" data-end=\"1167\">\u20b93.6 lakh crore sanctioned<\/li>\n<li data-section-id=\"1akdpul\" data-start=\"1168\" data-end=\"1210\">Over 1.2 crore borrowers supported<\/li>\n<\/ul>\n<p data-start=\"1212\" data-end=\"1321\">The new proposal is positioned as a similar credit guarantee mechanism adapted to current economic pressures.<\/p>\n<p data-start=\"1212\" data-end=\"1321\">Read More : <a href=\"https:\/\/www.niftytrader.in\/markets\/sebi-weighs-intraday-strike-price\/\">SEBI Weighs Intraday Strike Price Framework to Improve Options Liquidity<\/a><\/p>\n<h2 data-section-id=\"fmijkh\" data-start=\"1328\" data-end=\"1395\"><span role=\"text\">Sector Stress Builds as Fuel Costs and Import Pressures Rise<\/span><\/h2>\n<p data-start=\"1397\" data-end=\"1471\">The proposal comes amid global disruptions linked to the West Asia crisis.<\/p>\n<ul data-start=\"1473\" data-end=\"1662\">\n<li data-section-id=\"11pqnr5\" data-start=\"1473\" data-end=\"1547\">Aviation companies are facing higher aviation turbine fuel (ATF) costs<\/li>\n<li data-section-id=\"1uk4hgb\" data-start=\"1548\" data-end=\"1615\">MSMEs dependent on imports are dealing with rising input prices<\/li>\n<li data-section-id=\"xdijno\" data-start=\"1616\" data-end=\"1662\">Export-linked firms face demand volatility<\/li>\n<\/ul>\n<p data-start=\"1664\" data-end=\"1808\">A person familiar with the discussions said, <em data-start=\"1709\" data-end=\"1808\">\u201cThe objective is to prevent temporary liquidity stress from turning into broader credit stress.\u201d<\/em><\/p>\n<h2 data-section-id=\"1pnv4na\" data-start=\"1815\" data-end=\"1869\"><span role=\"text\">Industry Data Points to MSME Credit Constraints<\/span><\/h2>\n<p data-start=\"1871\" data-end=\"1964\">Industry submissions have highlighted persistent credit access challenges in the MSME sector.<\/p>\n<p data-start=\"1966\" data-end=\"2303\">In its pre-budget memorandum for FY2026\u201327, <span class=\"hover:entity-accent entity-underline inline cursor-pointer align-baseline\"><span class=\"whitespace-normal\">Federation of Indian Chambers of Commerce &amp; Industry<\/span><\/span> noted that a significant portion of MSMEs continue to face a credit gap, particularly during periods of input cost volatility and external demand shocks. The industry body recommended expanding credit guarantee mechanisms to sustain lending flows.<\/p>\n<p data-start=\"2305\" data-end=\"2363\">This aligns with the rationale behind the proposed scheme.<\/p>\n<h2 data-section-id=\"1xqmgoq\" data-start=\"2370\" data-end=\"2438\"><span role=\"text\">How the Credit Guarantee Mechanism Supports Lending Stability<\/span><\/h2>\n<p data-start=\"2440\" data-end=\"2469\">Under the proposed structure:<\/p>\n<ul data-start=\"2471\" data-end=\"2598\">\n<li data-section-id=\"kf9mj9\" data-start=\"2471\" data-end=\"2513\">Banks extend loans to eligible sectors<\/li>\n<li data-section-id=\"11s6kji\" data-start=\"2514\" data-end=\"2560\">The government provides partial guarantees<\/li>\n<li data-section-id=\"1g8uq3c\" data-start=\"2561\" data-end=\"2598\">Lenders\u2019 risk exposure is reduced<\/li>\n<\/ul>\n<p data-start=\"2600\" data-end=\"2674\">This enables continued credit flow during periods of economic uncertainty.<\/p>\n<h2 data-section-id=\"13f4w8k\" data-start=\"2681\" data-end=\"2772\"><span role=\"text\">Market, Trader and Investor Impact: Policy Signal Without Immediate Earnings Trigger<\/span><\/h2>\n<p data-start=\"2774\" data-end=\"2870\">The development represents a policy-stage signal rather than an immediate earnings catalyst.<\/p>\n<ul data-start=\"2872\" data-end=\"3119\">\n<li data-section-id=\"x20djk\" data-start=\"2872\" data-end=\"2938\">Markets: Indicates government support for stressed sectors<\/li>\n<li data-section-id=\"u06lqj\" data-start=\"2939\" data-end=\"3033\">Traders: Sector-specific interest may emerge in aviation and MSME-linked lending plays<\/li>\n<li data-section-id=\"kpvcow\" data-start=\"3034\" data-end=\"3119\">Investors: Potential to contain credit stress and support earnings visibility<\/li>\n<\/ul>\n<p data-start=\"3121\" data-end=\"3207\">No broad-based market movement has been directly attributed to the development so far.<\/p>\n<h2 data-section-id=\"1ykakny\" data-start=\"3214\" data-end=\"3266\"><span role=\"text\">Key Details Pending Ahead of Cabinet Approval<\/span><\/h2>\n<p data-start=\"3268\" data-end=\"3321\">Before rollout, the following remain to be finalised:<\/p>\n<ul data-start=\"3323\" data-end=\"3402\">\n<li data-section-id=\"1khmdwh\" data-start=\"3323\" data-end=\"3349\">Sector-wise allocation<\/li>\n<li data-section-id=\"1vvng9i\" data-start=\"3350\" data-end=\"3374\">Eligibility criteria<\/li>\n<li data-section-id=\"1fpfykh\" data-start=\"3375\" data-end=\"3402\">Implementation timeline<\/li>\n<\/ul>\n<p data-start=\"3404\" data-end=\"3452\">These will be determined after Cabinet approval.<\/p>\n<h2 data-section-id=\"1p1pmbt\" data-start=\"3459\" data-end=\"3521\"><span role=\"text\">FAQs: \u20b92.5 Lakh Crore Credit Guarantee Scheme Explained<\/span><\/h2>\n<h3 data-section-id=\"6gv1ad\" data-start=\"3523\" data-end=\"3585\"><span role=\"text\">What is the \u20b92.5 lakh crore credit guarantee scheme?<\/span><\/h3>\n<p data-start=\"3586\" data-end=\"3688\">It is a proposed government-backed framework where loans to stressed sectors are partially guaranteed.<\/p>\n<h3 data-section-id=\"15sh882\" data-start=\"3695\" data-end=\"3732\"><span role=\"text\">Which sectors will benefit?<\/span><\/h3>\n<p data-start=\"3733\" data-end=\"3796\">MSMEs, aviation, and businesses affected by global disruptions.<\/p>\n<h3 data-section-id=\"8615l\" data-start=\"3803\" data-end=\"3838\"><span role=\"text\">How does the scheme work?<\/span><\/h3>\n<p data-start=\"3839\" data-end=\"3914\">Banks lend while the government provides guarantees to reduce default risk.<\/p>\n<h3 data-section-id=\"1fetwap\" data-start=\"3921\" data-end=\"3957\"><span role=\"text\">Is the scheme implemented?<\/span><\/h3>\n<p data-start=\"3958\" data-end=\"3994\">No, it is awaiting Cabinet approval.<\/p>\n<h3 data-section-id=\"durnyw\" data-start=\"4001\" data-end=\"4044\"><span role=\"text\">How is this different from ECLGS?<\/span><\/h3>\n<p data-start=\"4045\" data-end=\"4119\">It follows a similar model but is tailored to current economic conditions.<\/p>\n<h3 data-section-id=\"scs1bu\" data-start=\"4126\" data-end=\"4160\"><span role=\"text\">What are the next steps?<\/span><\/h3>\n<p data-start=\"4161\" data-end=\"4218\">Cabinet approval followed by detailed rollout guidelines.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>EFC Clearance Moves MSME and Aviation Support Scheme to Final Approval Stage Ministry of Finance India has prepared a Cabinet note for a \u20b92.5 lakh crore credit guarantee scheme after the Expenditure Finance Committee (EFC) cleared the proposal, according to a senior government official familiar with the process. Cabinet approval is now the final step [&hellip;]<\/p>\n","protected":false},"author":4,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1362],"tags":[],"ppma_author":[1331],"class_list":{"0":"post-25147","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-finance-and-economy-news"}," _eael_post_view_count":0,"authors":[{"term_id":1331,"user_id":4,"is_guest":0,"slug":"sourabh","display_name":"Sourabh Sharma","avatar_url":{"url":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/11\/Sourabh-Sharma.png","url2x":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/11\/Sourabh-Sharma.png"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":""}],"_links":{"self":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/25147","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/comments?post=25147"}],"version-history":[{"count":2,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/25147\/revisions"}],"predecessor-version":[{"id":25151,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/25147\/revisions\/25151"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media\/25148"}],"wp:attachment":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media?parent=25147"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/categories?post=25147"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/tags?post=25147"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/ppma_author?post=25147"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}