Budget 2026: FM Sitharaman Allocates ₹9,000 Crore for GECL Facility

• Finance Minister Nirmala Sitharaman has provisioned ₹9,000 crore under the Guaranteed Emergency Credit Line (GECL) facility in the Union Budget 2026.
• GECL is part of the Emergency Credit Line Guarantee Scheme (ECLGS), offering 100% collateral-free, government-backed loans to eligible MSMEs and businesses.
• Launched in May 2020 as part of the Atmanirbhar Bharat package, ECLGS aimed to address liquidity stress caused by Covid-19, playing a critical role in supporting small businesses.
• The scheme issued cumulative guarantees of ₹3.6–3.7 lakh crore to approximately 1.19 crore borrowers, with over 95% being MSMEs.
• Despite its closure in FY23, there are growing calls for a revival or a successor scheme due to ongoing global and domestic economic challenges.

Why It Matters: FM Sitharaman allocated ₹9,000 crore to GECL, extending support for MSMEs and businesses facing liquidity challenges.