Credit Guarantee Scheme for Exporters (CGSE)
The Credit Guarantee Scheme for Exporters is a central‐sector scheme approved by the Government of India under the supervision of the National Credit Guarantee Trustee Company Limited through the Department of Financial Services, Government of India. The scheme was launched in November 2025. Its purpose is to provide 100% credit guarantee cover to Member Lending Institutions for loans extended to eligible exporters so that they can access additional collateral-free credit facilities for export activities, thereby enhancing liquidity, market diversification and global competitiveness. The benefit for your export business is that you can obtain more credit from banks or lending institutions without providing additional collateral, because the guarantee risk is covered by the scheme.
Key Features
- Guarantee cover of 100%: Under CGSE, when an eligible exporter obtains additional credit from a Member Lending Institution, the entire credit amount is covered by the guarantee provided by NCGTC. This means the bank/lender has zero credit risk .
- Maximum Loan amount ₹50 crore per borrower & Coverage of up to ₹ 20,000 crore credit facility: The scheme is designed to support extension of additional credit totalling up to ₹ 20,000 crore by MLIs under guarantee cover. This gives a large pool of credit for exporters’ liquidity needs.
- Applicability to MSME and non-MSME exporters: The scheme is not restricted only to micro or small exporters; both MSME exporters and larger exporters qualify, making it wide‐ranging.
- Quantum of support:
- Direct Exporters - Up to 20% of sanctioned export working capital limits
- Indirect Exporters - Up to 20% of sanctioned domestic working capital limits
- Interest Rate & Lock in Period: 1% below existing working capital rate and capped at 10% p.a. for banks/FI and around 14% p.a. for NBFCs. and Lock in Period is 6 months from commencement of guarantee cover
- Implementation via MLIs and NCGTC: The bank/lender sanctions the additional credit to the exporter, obtains guarantee cover from NCGTC under CGSE, and then disburses the credit. The exporter then has the facility to use for export business.
- Collateral-free credit extension: The credit under the scheme is described as “collateral‐free” in the Cabinet release, meaning the exporter does not need to provide additional security for the part covered under guarantee.
- Management oversight by DFS Committee: A management committee under the Secretary of DFS will oversee the scheme’s progress, monitoring implementation across banks/MLIs and guarantee flows. This suggests structured governance.
Financial Assistance
Eligibility Criteria
Who can apply:
Eligible direct exporters
- MSME units with minimum 5% of turnover from exports & Non-MSME units with minimum 20% of turnover from exports
- Units must have active export working capital limits
Eligible indirect exporters
- MSME unit who supply at least 30% of their total turnover to the direct exporting units
- Units must have active export working capital limits with an eligible lender
General rules to be followed by exporters
- In case of MSME, they should have a valid Udhyam Registration Number
- Registered exporters with valid IEC .
- Export turnover criteria has to be met in either of 2 previous financial years
- Accounts of eligible borrowers should be in Standard category .
- Accounts of eligible borrowers should not be an NPA.
Who cannot apply:
- Exporters without a valid IEC.
- Units classified as NPAs, defaulters or with poor credit records.
- Entities engaged in prohibited or restricted exports.
- Companies with unresolved disputes or fraudulent history.
- Exporters not availing formal export credit from banks.
Documents Required
- IEC Certificate
- Export order or letter of credit
- KYC documents of exporter
- Bank account and financial statements
- GST registration
- Exporter declaration forms
- Business profile and turnover details
- Collateral details
Application Process for the Scheme
Option 1: Apply with Bullit
Click here to start with guided support. Our team verifies eligibility, compiles documents, and handles application & follow-ups on your behalf. You can monitor progress while focusing on operations.
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Option 2: Apply Through Banks
- Approach an ECGC-partner bank for export credit.
- Submit export order details, IEC, financials and KYC documents.
- Bank assesses creditworthiness and sanctions export finance.
- Bank obtains guarantee cover under CGSE through ECGC.
- Exporter receives pre-shipment or post-shipment credit based on requirements.
Related Schemes
Frequently asked questions
What is the objective of CGSE?
The objective is to provide 100% credit guarantee cover to banks/MLIs for additional export credit extended to eligible exporters (including MSMEs), thereby improving liquidity, enabling export growth and diversification into new markets.
What is the interest rate provision under the CGSE
The interest charged on a CGSE-supported loan must be at least 1% lower than the interest rate on the exporter’s existing working capital facility with the same bank or lender. To prevent excessive pricing, the scheme also sets upper limits: banks and financial institutions cannot charge more than 10% per annum, while NBFCs are capped at 14% per annum, subject to RBI guidelines.
Who implements or manages the scheme?
The scheme is implemented by the Department of Financial Services (DFS), via NCGTC, through Member Lending Institutions (MLIs) such as banks/financial institutions.
Does the scheme cover both manufacturing and services exporters?
Yes, both MSME and non-MSME exporters are eligible, which implies both goods and services exporters can benefit.
Which banks or institutions can provide these loans under CGSE?
Member Lending Institutions (MLIs) including scheduled commercial banks, NBFCs and other institutions approved by NCGTC will extend credit under the scheme.
What is the maximum loan amount granted under CGSE scheme?
The maximum loan amount (credit facility) that an eligible exporter can avail under the scheme is capped at ₹50 crore per borrower across all Member Lending Institutions (MLI). The scheme also allows additional working capital/term loans up to 20% of your sanctioned export working capital limits (for direct exporters) or working capital limits (for indirect exporters) subject to the cap.
All applications under the CGSE must flow from which portal
All applications must flow through the Jan Samarth Portal and then be processed/lodged with the National Credit Guarantee Trustee Company (NCGTC) for guarantee cover.