FISME urges higher ECLGS 5.0 budget outlay to meet pending MSME demands

The Federation of Indian Micro and Small & Medium Enterprises (FISME) has petitioned the government to raise its budget commitment for ECLGS 5.0, citing a backlog of approved MSME loan requests awaiting guarantee cover.

The guarantee scheme, designed to provide credit support to small and medium enterprises, has reportedly accumulated pending applications from businesses that meet eligibility criteria but remain unable to secure disbursement due to insufficient allocation limits.

FISME's appeal comes ahead of budget discussions, with the industry body arguing that enhanced funding would unlock credit availability for micro and small enterprises facing operational challenges. The scheme has emerged as a critical lifeline for MSMEs seeking working capital and expansion financing since its introduction.

Government officials have previously emphasized their commitment to supporting small businesses through targeted credit schemes. The allocation increase, if approved, would ease the processing of outstanding applications and strengthen credit access across the MSME sector, particularly for enterprises in underserved regions.

FISME represents thousands of small and medium enterprises across India and regularly engages with policymakers on credit availability, regulatory compliance, and industry-specific challenges facing the sector.