MSME exporters to get 1% interest relief on loans

NEW EXPORT CREDIT COVER CAPPED AT %50 CRORE PERBORROWER

- PRASANTA SAHU

TO MAKE CREDIT more affordable, the Credit Guarantee Scheme for Exporters (CGSE) requires lending institutions to offer loans to exporters at a rate 1% lower than the existing interest rate applicable to the borrower.

Under the scheme, which is a compact version of Covid-period credit guarantee scheme for micro, small and medium enterprises (MSMEs), no guarantee fee will be charged, and no additional collateral security will be required—lenders will create a charge only on existing securities.