The Union Cabinet has approved an emergency credit guarantee scheme for the aviation and MSME sectors. It will provide additional credit support to businesses facing liquidity stress due to the West Asia situation, said Ashwini Vaishnaw, Information & Broadcasting Minister.
He said, “The scheme will offer 100 per cent guarantee coverage for MSMEs and 90 per cent for non-MSMEs and airlines through the National Credit Guarantee Trustee Company Limited (NCGTC) to lending institutions.” Eligible borrowers include MSMEs, non-MSMEs with existing working capital limits, and scheduled passenger airlines with outstanding credit as of 31 March 2026, provided their accounts are standard.
Under the scheme, additional credit limit for airlines is up to 100 per cent, capped at ₹1,500 crore per borrower, subject to specified conditions. Airline loans will have a seven-year tenure with a two-year moratorium. The scheme will apply to loans sanctioned up to 31March 2027. It is aimed at helping businesses “tide over the challenges arising from the West Asia conflict.”
With over 17 years of experience in the B2B travel and hospitality sector, she brings deep insight into travel trade dynamics, industry challenges and market developments. She holds an MA in English Literature and a Diploma in Journalism from the Xavier Institute of Communications, Mumbai, which underpin her strong editorial expertise. An avid nature enthusiast, she prefers outdoor and adventure-led travel, including hiking and trekking.
