News: As part of the initial rollout of the Export Promotion Mission, Collateral Support for Export Credit initiative under the NIRYAT PROTSAHAN sub-scheme has been launched to strengthen MSME exports and improve access to trade finance.
About Collateral Support for Export Credit Initiative
- The Collateral Support for Export Credit is a key component of the Export Promotion Mission (EPM) announced in the Union Budget 2025-26 and operationalized on January 2, 2026 by the Government of India.
- It is being implemented under the NIRYAT PROTSAHAN sub-scheme of EPM.
- Aim: It is aimed at giving MSME exporters the ability to access bank credit even with limited collateral or third-party guarantees.
- Outlay: ₹2,114 crore
- Implementing Agency: The scheme would be implemented through the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) on a pilot
- It will be applicable to export-linked working capital loans.
- Beneficiaries: MSME exporters exporting notified tariff lines will be eligible for the collateral support.
- Benefits: Guarantee coverage of up to 85 per cent will be provided for Micro and Small exporters and up to 65 per cent for Medium exporters, with a maximum outstanding guaranteed exposure of ₹10 crore per exporter in a financial year.
Note: To know more about the Export Promotion Mission (EPM), please CLICK here.
