Credit Guarantee Scheme for Exporters (CGSE)

Credit Guarantee:

1. Guarantee coverage provided by NCGTC Ltd which is trustee Company of Government of India to Member Lending Institutions.
2. 100% Guarantee coverage on the outstanding amount for the credit facility provided under the Scheme as on the date of NPA or on the date of lodgement of claim, whichever is lower.

Facility Type:

1. Term Loan

Duration:

The scheme would be available from the date of announcement of the scheme till issue of guarantees for loans amounting to Rs.20,000 crores or 31.03.2026, whichever is earlier.

Eligible Business Enterprises & Criteria:

The scheme is applicable to all eligible exporters (both direct and indirect), including eligible Micro, Small and Medium Enterprise (MSME) exporters

Eligible Borrowers as per the Scheme are as under:
i. Direct Exporters:
   1. MSME units with at least 5% of their turnover through exports.
   2. Other units (Non-MSME), with at least 20% of their turnover through exports
ii. Indirect Exporters:
   1. MSME unis who supply at least 30% of their total turnover to the units mentioned in (i) above
iii. Condition mentioned in point (i) & (ii) above may be satisfied with respect to either of the previous two financial years i.e. FY 2023-24 and FY 2024-25.
iv. In case of MSME, they should have a valid Udyam Registration Number.
v. 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 an eligible Member Lending  Institution at the time of sanction/disbursement of this loan.   
vi. The accounts of eligible borrowers should be in Standard category (excluding SMA – 2) as verified through Credit Bureau Report as on 30.09.2025 and not as NPA as on the date of sanction / disbursement of facility.

Loan Amount:

Quantum of Support, per borrower would be as under:

1. Direct Exporters: Up to 20% of sanctioned export working capital limits (fund based and non-fund based)

1. Indirect Exporters: Up to 20% of the sanctioned working capital limits (fund based and non-fund based).

For (a) & (b) above: In case the outstanding is lower than the sanctioned amount in the existing fund based working capital account, the lender shall first utilize such available balances before extending credit under the scheme.

Maximum Loan Amount:

1. Rs.50.00 crore per borrower (In Rupee currency only).
2. Working capital limits (i.e. Export Working Capital limits for Direct Exporters and Domestic Working Capital limits for Indirect Exporters) existing as on 30.09.2025 to be considered for the calculation of proposed facility

Status of the Borrower Account on the date of Sanction / Disbursement:

The accounts of eligible borrowers should be in Standard category (excluding SMA – 2) i.e. not exceeding 60 days overdue across all lenders, as verified through Credit Bureau Report) as on 30.09.2025 and not as NPA as on the date of sanction / disbursement of facility.

Security:

1. Primary Security will be: Hypothecation of Plant & Machinery / Mortgage on immovable properties.

1. Collateral Security will be: Existing security will be continued. Extension of charge on existing securities offered.

1. 100% Guarantee Cover is available under CGSE Scheme.
2. The MLI shall hold charge on the primary securities (existing and proposed under the Scheme) and on existing collateral securities on behalf of NCGTC and shall ensure that necessary documentation in this regard is done prior to the account turning NPA, failing which claim shall not be entertained.
3. No additional collateral shall be sought for additional funding under the Scheme.
4. No fresh personal / corporate guarantee or extension of existing personal / corporate guarantee be obtained.
5. 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 MLI before the account turns NPA.
6. CERSAI registration is mandatory.

Rate of Interest:

1% below interest rate on any existing working capital facility of MLI on date of issue of guidelines, capped at 10% p.a. (for Banks/FIs).

Processing Fees:

No processing fee shall be charged for sanction of this facility.

Tenure:

4 years fixed, including 1 year moratorium. The loan shall be repayable in equal monthly instalments after the moratorium period.

To explore complete details and eligibility criteria for the Credit Guarantee Scheme for Exporters (CGSE), Click Here.