Collateral Support for Export Credit Initiative

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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

Collateral Support for Export Credit Initiative
Source – PIB
  • 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.

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