Credit Guarantee Scheme for Exporters (CGSE)

Credit Guarantee Scheme for Exporters (CGSE) is a Scheme launched by the Government of India to provide 100% guarantee coverage to Member Lending Institutions (MLIs) for the additional liquidity support to the exporters. The Scheme is housed in a Trust/Fund viz. Credit Guarantee Fund for Exporters. The Trust is managed by Trustee viz. National Credit Guarantee Trustee Company Limited (NCGTC), a wholly owned company of Department of Financial Services, Ministry of Finance, Government of India.

Key Features

Quantum of Support:
- Direct Exporters: Up to 20 per cent of sanctioned export working capital limits (fund based and non-fund based)
- In-direct Exporters: Up to 20 per cent of the sanctioned working capital limits (fund based and non-fund based)
Maximum Loan Amount: INR 50 crore per borrower
Tenor of the Loan: 4 years fixed, including 1 year moratorium
Interest Rate: 1% below interest rate on any existing working capital facility, capped at 10% p.a. (for Banks/FIs) and 14% p.a. (for NBFCs)
Guarantee Cover: 100%
Lock in period: 6 months from the date of commencement of guarantee cover
Processing Fee: Nil
Guarantee Fee: Nil

Direct Exporters:

MSME Units: Minimum 5% turnover from the exports
Non-MSME Units: Minimum 20% turnover from the exports
Export Turnover criteria can be met in either of the previous two financial years (FY24 or FY25)
Must have active export working capital limits with an eligible lender
Account Status: Standard (Not NPA, Not SMA-2, and <=60 days overdue as of September 30, 2025

In-direct Exporters:

MSME units supplying >=30% of turnover to eligible direct exporters
Must have active domestic working capital limits with an eligible lender

Additional Conditions:

MSMEs must have a valid Udyam Registration Number
Borrower accounts should not be classified as NPA at time of sanction/disbursement

Exclusion:

Credit Facilities are not eligible if:

Risk are additionally covered under a scheme operated/administered by RBI/Central Government scheme or insurance
Facilities does not comply with scheme guidelines or RBI directives

No additional collateral required
No fresh personal/corporate guarantees
Facility ranks second charge on cash flows and security

For more details: https://www.ncgtc.in/en/product-details/CGSE/Credit-Guarantee-Scheme-for-Exporters-(CGSE)

Credit Guarantee Scheme for Exporters (CGSE)