Credit Guarantee Scheme for Exporters (CGSE)
The Union Cabinet approved the Credit Guarantee Scheme for Exporters (CGSE) on 12 November 2025; it envisaged collateral-free credit support of up to ₹20,000 crore to exporters and was open until 31 March 2026 or until guarantees of that value were issued, whichever was earlier. OBJECTIVE: Provide 100% credit guarantee coverage to lending institutions for extending additional credit to eligible exporters including MSMEs. KEY FEATURES: - 100% credit guarantee by National Credit Guarantee Trustee Company (NCGTC) - Collateral-free additional working capital up to 20% of sanctioned export limits - Credit guarantee on loans up to ₹50 crore per borrower - Interest rate capped at 1% below existing working capital rate, max 10% p.a. - Implemented by Department of Financial Services through NCGTC BENEFICIARIES: MSME and non-MSME exporters; export sector employs 45 million people, MSMEs contribute 45% of total exports BUDGET: Up to ₹20,000 crore in credit guarantee coverage
- Union Cabinet approved Credit Guarantee Scheme for Exporters (CGSE) on 12 November 2025 with up to ₹20,000 crore in credit guarantee coverage
- Provides 100% credit guarantee by National Credit Guarantee Trustee Company (NCGTC) to lending institutions for extending additional credit to exporters
- Collateral-free additional working capital up to 20% of sanctioned export limits; credit guarantee on loans up to ₹50 crore per borrower
- Interest rate capped at 1% below existing working capital rate, maximum 10% per annum
- Beneficiaries include MSME and non-MSME exporters; export sector employs 45 million people with MSMEs contributing 45% of total exports
- Implemented by Department of Financial Services through NCGTC
What is the Credit Guarantee Scheme for Exporters (CGSE)?
CGSE was approved by the Union Cabinet on 12 November 2025 to provide 100% credit guarantee coverage through NCGTC to lending institutions, enabling collateral-free credit support up to ₹20,000 crore for eligible exporters; it was open until 31 March 2026 or until guarantees up to ₹20,000 crore were issued, whichever was earlier.
How much additional working capital can exporters get under CGSE?
Exporters can access collateral-free additional working capital up to 20% of their sanctioned export limits, with credit guarantee coverage available on loans up to ₹50 crore per borrower.
What interest rate cap applies under CGSE?
The interest rate is capped at 1% below the existing working capital rate and cannot exceed 10% per annum, making export credit more affordable for MSMEs and other exporters.
Who implements the CGSE?
The Department of Financial Services, Ministry of Finance, implements CGSE through the National Credit Guarantee Trustee Company (NCGTC), which provides the 100% credit guarantee to participating lenders.
Who benefits from the CGSE?
Both MSME and non-MSME exporters benefit from CGSE. MSMEs contribute 45% of India's total exports, so collateral-free working capital credit is expected to strengthen their export activity.
Practice MCQs on this topic.
Reinforce your understanding with targeted MCQ practice on economy, governance, and current affairs.