Credit Guarantee Scheme for Exporters (CGSE)

Name of the Facility

Credit Guarantee Scheme for Exporters (CGSE)

Scheme validity

The scheme would be available from the date of announcement of the Scheme i.e 19-11-2025 till issue of guarantees for loans amounting to Rs. 20,000 crore or 31.03.2026, whichever is earlier.

Purpose

To enable exporters to manage the short-term liquidity mismatches and explore new potential markets.

Eligibility

1)      Direct exporters

a.       MSME units with at least 5 per cent of their turnover through exports.

b.       Non-MSME units with at least 20 per cent of their turnover through exports.

2)      Indirect exporters - MSME units who supply at least 30 per cent of their total turnover to the Direct exporters units.

3)      The eligibility criteria for direct exporters will be based on the proportion of their turnover attributable to exports to the US market in the sectors specified by NCGTC.

4)      MSMEs should have a valid Udyam Registration certificate

5)      The borrower classified under the direct exporter category must have active export working capital limits and those classified under indirect category should have active working capital limits with bank at the time of sanction/disbursement of this loan.

6)      The accounts of the eligible borrowers should be in Standard category (excluding SMA-2 accounts), i.e. not exceeding 60 days overdue across all lenders, as verified through Credit Bureau report) as on September 30, 2025 and not an NPA as on the date of sanction/disbursement of facility.

Assessment & Quantum of Finance

1)      Maximum Loan Amount: ₹50 crore per borrower (in rupee currency only) across all Banks.

2)      Direct exporters: Upto 20% of sanctioned export working capital limits (fund based and non-fund based).

3)      Indirect exporters: Upto 20% of the sanctioned working capital limits (fund based and non-fund based)

4)      Working capital limits (i.e. Export working capital limits for Direct exporters; Domestic working capital limits for indirect exporters) existing on September 30, 2025 to be considered for the calculation of proposed facility. Ad-hoc limits granted as on the reference date shall not be considered for arriving at the eligible amount.

Tenor of loan

4 years including 1 year moratorium.

Interest Rate

1% below any of the existing fund based working capital facilities subject to cap of 10% p.a.

In case existing working capital facilities are only in foreign currency, the MLI should extend support under the Scheme at 1% below (subject to cap mentioned above) rupee interest rate equivalent on one such facility.

Security

Primary - Assets created out of the CGSE limit disbursed.

Collateral - No additional collateral shall be sought for additional funding under the Scheme. The facility sanctioned under the scheme shall rank second charge with the existing credit facilities in terms of cash flows (including repayments) and security, with charge on assets to be created by the MLI before the account turns NPA.

Processing fee/ Pre-payment penalty             

Nil

NCGTC guarantee fee

Nil

NCGTC Guidelines

Please visit NCGTC Website