Exporters to get up to Rs 50 cr at concessional rate under credit guarantee scheme

New Delhi, Nov 13 (PTI) Exporters can access up to Rs 50 crore additional credit each at a concessional rate under the Credit Guarantee Scheme for Exporters announced by the government on Wednesday.

To tide over short-term mismatches and to explore new potential markets, the government introduced the Credit Guarantee Scheme for Exporters with the objective of providing 100 per cent guarantee coverage for the additional credit facility extended to exporters in need of additional working capital.

Under the scheme, exporters can access up to 20 per cent of sanctioned export working capital limits, while indirect exporters would get up to 20 per cent of the working capital limits not exceeding Rs 50 crore, as per the details of the scheme announced by the government.

The interest rate would be 1 per cent lower than on the existing facility on the date of issue of guidelines. The duration of the loan under the scheme would be 4 years from the date of first disbursement and would include a moratorium of 1 year, it said.

The scheme would be applicable from the date of issue of the guidelines by National Credit Guarantee Trustee Company Limited (NCGTC) up to March 31, 2026, or till guarantees amounting to Rs 20,000 crore are issued, whichever is earlier.

In a bid to provide relief to exporters, the Union Cabinet on Wednesday approved the introduction of the Credit Guarantee Scheme for Exporters (CGSE) to provide 100 per cent credit guarantee coverage by NCGTC to Member Lending Institutions (MLIs) for extending additional credit facilities up to Rs 20,000 crore to eligible exporters, including MSMEs.

Exporters are facing issues due to a steep tariff imposed by the US on Indian shipments from August.

The US imposed a steep tariff of 50 per cent on goods from India, which took effect on August 27. PTI DP SHW