ECLGS 4.0 refers to emergency Credit Line Guarantee Scheme version 4.0 classification used to map facilities to the correct scheme window, eligibility criteria, repayment structure, and guarantee reporting. In MSME underwriting, it helps the bank understand the nature of the requested or existing facility, the repayment route, the security expectations and the conditions that must be tracked after sanction. For example, a scheme-linked facility should be checked for eligibility, permitted use, documentation and repayment terms instead of being treated like a normal generic loan. This matters because product structure affects cash-flow assessment, limit sizing, pricing, documentation and monitoring frequency. The common mistake is to look only at the sanctioned amount while ignoring tenor, utilisation behaviour, repayment cycle, renewal terms and closure conditions.