Exports continue to be a critical pillar of India’s economy, contributing nearly 21 per cent to the country’s Gross Domestic Product. Export-oriented industries provide direct and indirect employment to over 45 million people, underlining their importance in sustaining livelihoods and economic growth.
MSMEs play a central role in this ecosystem, accounting for nearly 45 per cent of India’s total exports. Their performance has been instrumental in supporting foreign exchange inflows, strengthening the current account balance and ensuring macroeconomic stability.
Objective and Scope of the CGSE
Implemented by the Department of Financial Services, the Credit Guarantee Scheme for Exporters is designed as a proactive intervention during a period of global headwinds. The scheme enables banks and financial institutions, referred to as Member Lending Institutions, to extend additional financial assistance to exporters.
By providing a government-backed credit guarantee, the scheme facilitates access to additional collateral-free loans, ensuring business continuity and encouraging exporters to explore new and emerging markets.
₹20,000 Crore Collateral-Free Credit Support
Under the scheme, additional collateral-free credit support of up to ₹20,000 crore is envisaged for direct and indirect exporter MSMEs through eligible lending institutions. As of December 31, 2025, a total of 1,788 applications amounting to ₹8,599 crore had been received.
Of these, 716 applications were sanctioned, amounting to ₹3,141 crore. This early uptake signals strong demand and trust in the scheme among exporters facing liquidity constraints.
100% Government Guarantee for Additional Loans
One of the key features of the CGSE is the provision of a 100 per cent government guarantee for the additional loan facility extended under the scheme. Exporters can avail working capital loans equivalent to up to 20 per cent of their existing export credit or working capital limits.
This financial cushion is expected to help exporters upgrade capabilities, improve competitiveness and diversify their export destinations while safeguarding existing employment.
Implementation Timeline and Agencies
The Credit Guarantee Scheme for Exporters will remain open until March 31, 2026, or until guarantees worth ₹20,000 crore are issued, whichever is earlier. The scheme is being implemented by the Department of Financial Services through the National Credit Guarantee Trustee Company Limited.
Applications are processed through the Jan Samarth Portal, providing a streamlined digital interface for exporters and lenders.