Q. Consider the following statements about the Collateral Support for Export Credit Initiative:
1.The initiative aims to enable collateral-free export credit for exporters by providing government-backed credit guarantee support to lending institutions.
2.It is implemented through the National Credit Guarantee Trustee Company Ltd. (NCGTC) under the Ministry of Commerce and Industry.
3.The initiative provides direct interest subvention to exporters on export loans to enhance price competitiveness in global markets.
Which of the statements given above is/are correct?
Answer: A
Notes:
Explanation: 1 and 2 only
Statement 1 is correct: The initiative reduces lenders’ risk through a credit guarantee mechanism, enabling exporters—especially MSMEs—to access export credit without collateral.
Statement 2 is correct: The scheme is anchored in the Ministry of Commerce and Industry and operationalised via NCGTC, targeting MSME export finance constraints.
Statement 3 is incorrect: The initiative does not provide interest subvention; it focuses on risk-sharing through collateral support, not subsidising interest rates.
Source: PIB
