 "Govt may need ₹2,000 cr corpus to implement credit guarantee scheme")
The government has estimated it would need to allocate Rs 2,000 crore to provide for the credit guarantee scheme of Rs 20,000 crore to support exporters, official sources said.
On Wednesday, the Cabinet had approved schemes worth ~Rs 45,060 crore to support exporters, particularly micro, small and medium enterprises (MSMEs), grappling with challenges due to the 50 per cent tariff imposed by the United States (US) on several Indian products. This package includes Rs 20,000 crore in credit guarantees on bank loans.
The National Credit Guarantee Trustee Company Limited (NCGTC), sources said, had enough corpus to meet the requirement for the credit guarantee scheme for exporters (CGSE). However, sources said that an additional allocation could be sought through the supplementary budget during the upcoming Winter Session of Parliament.
The scheme would be applicable from the date of issue of the guidelines by NCGTC up to March 31, 2026, or till guarantees amounting to Rs 20,000 crore are issued, whichever is earlier. The maximum loan amount has been set at Rs 50 crore per borrower.
The scheme would be available to direct and indirect exporters and detailed eligibility criteria will be decided by the management committee of the scheme chaired by DFS Secretary M Nagaraju. This committee will oversee the progress and implementation of the programme.
The government said that the scheme is expected to enhance the global competitiveness of Indian exporters and support diversification into new and emerging markets. “By enabling collateral-free credit access under CGSE, it will strengthen liquidity, ensure smooth business operations, and reinforce India’s progress towards achieving the $1 trillion export target. This will further reinforce India’s journey towards Aatmanirbhar Bharat,” the government had said in a statement.
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