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New credit cover for MSME exporters by September

June 09, 2025

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Financial Express Lucknow

Scheme to cover collateral-free loans of up to ₹20 crore

- PRASANTA SAHU

The Centre will prepare the draft of a new credit guarantee scheme for export-oriented MSMEs within a month. The scheme will cover collateral-free loans of up to ₹20 crore per borrower.

Under the proposed scheme, up to 95% of loans for micro and small enterprises and up to 75% for medium enterprises may be guaranteed. The guarantee fee for borrowers is expected to be around 1.5%, sources told FE.

"The target is to roll out the scheme by September," a senior official said, adding that the scheme will remain in force for six years or until the end of the 16th Finance Commission award cycle, ending FY31.

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