Centre plans new credit cover for MSME exporters

FACILITY FOR LOANS UPTO 100 CRORE

- PRASANTA SAHU

TO AID EXPORTERS impacted due to the steep US tariffs and diversify to other markets, the Centre may soon launch a credit guarantee scheme for MSME exporters for loans up to 100 crore.

This new scheme for exporters could be on the lines of the common Mutual Credit Guarantee Scheme (MCGS) for MSMEs launched earlier this year for the manufacturing sector, but with simplified terms, sources told FE.

“In MCGS, there is a 5% upfront deposit to be made while applying for guarantee cover for a loan.

“For the proposed scheme for exporters, the deposit can be reduced for exporters,” an official said, adding that the scheme is still in the discussion stage and no final decision has been taken.

The MCGS scheme, launched in January 2025, provides a 60% guarantee coverage by National Credit Guarantee Trustee Company Limited (NCGTC) to member lending institutions (MLIs) for credit facilities up to 100 crore to eligible MSMEs for the purchase of equipment or machinery.