Credit Guarantee Scheme for Exporters
The Credit Guarantee Scheme for Exporters (CGSE) is a Government of India initiative implemented through the Department of Financial Services (DFS) and managed by the National Credit Guarantee Trustee Company Limited (NCGTC). The scheme is designed to provide additional collateral-free credit support to eligible exporters, including MSMEs, by offering 100% credit guarantee coverage to Member Lending Institutions (MLIs) for approved facilities. The scheme aims to:
- Enable exporters to manage short-term liquidity mismatches associated with export cycles.
- Support expansion into new and emerging global markets.
- Strengthen the global competitiveness of Indian exporters.
2.Scheme Duration
CGSE remains available from the date of announcement until either guarantees up to Rs.20,000 crore is issued or March 31, 2026, whichever is earlier.
3.Eligibility Criteria
3.1.Eligible Borrowers
1. Direct Exporters
- MSME exporters with ≥5% export turnover of total turnover.
- Non-MSME exporters with ≥20% export turnover of total turnover.
2. Indirect Exporters
MSMEs supplying ≥30% of turnover to direct exporters eligible under the scheme.
3. Account Status
Accounts classified as Standard (not SMA-2 or NPA) as on the reference date (30.09.2025) specified in scheme guidelines.
3.2.Quantum of Finance
Up to 20% of existing sanctioned export working capital limits as on 30.09.25 (fund-based and non-fund-based) for direct and indirect exporters.
Maximum loan amount: Rs. 50 crore per borrower across all MLIs.
4.Key Features
4.1.Guarantee Coverage
100% credit guarantee provided by NCGTC to the Member Lending Institution for eligible loans.
4.2.Tenor & Moratorium
- Fixed loan tenor of 4 years, including a 1-year moratorium.
- Repayment in equal monthly instalments post-moratorium.
4.3.Interest Rate
- Loan interest at 1% below the interest rate on existing working capital facilities (subject to applicable RBI guidelines).
- Maximum rate capped at 10% p.a. for Banks.
4.4.Collateral & Guarantees
- No additional collateral required for credit extended under CGSE.
- No new personal or corporate guarantees shall be taken for the additional funding under the scheme.
4.5.Processing Fees
Nil processing fee for sanctioning the credit facility under the scheme.
5.How to Apply
Applications for credit guarantee coverage under CGSE must be submitted through the Jansamarth Portal, the Government of India’s unified digital portal for credit-linked schemes.
Apply / Login:
https://www.jansamarth.in/exporter-credit-guarantee-scheme
6.Additional Scheme Information
For detailed scheme guidelines, eligibility thresholds, form requirements, Member Lending Institution registration and administration, visit the NCGTC official website.
NCGTC – For More Details:
https://www.ncgtc.in/en/product-details/CGSE/Credit-Guarantee-Scheme-for-Exporters-(CGSE)
Karur Vysya Bank (KVB) supports eligible exporters by facilitating applications under the CGSE, structuring credit facilities and guiding documentation requirements. Exporters are encouraged to contact their relationship manager or nearest KVB branch for assistance.
