NIRYAT PROTSAHAN – Collateral Guarantee for Export Credit
Niryat Protsahan - Collateral Guarantee for Export Credit is a credit risk support component under the Government of India’s Export Promotion Mission (EPM). The scheme is implemented by the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry, in coordination with the Ministry of Finance. Approved by the Union Cabinet in November 2025, the scheme is operational from FY 2025–26 onwards. Its objective is to enable MSME exporters to access export credit without providing traditional collateral, by offering a government-backed collateral guarantee to lending institutions. This directly helps MSMEs that face difficulties in securing export loans due to lack of assets.
Key Features
- Government-Backed Collateral Guarantee: Under this feature, the Government provides a guarantee cover to banks and lending institutions against the export credit extended to MSMEs. This reduces the lender’s risk and enables them to sanction loans without demanding property, fixed assets, or third-party guarantees from exporters.
- Coverage for Pre-Shipment and Post-Shipment Export Credit: The guarantee applies to export credit taken both before shipment (for production, procurement, and logistics) and after shipment (while waiting for export proceeds). This ensures end-to-end risk support across the export cycle.
- Exclusive Focus on MSME Exporters: Only enterprises registered as MSMEs are eligible. The scheme particularly benefits micro and small exporters who lack sufficient collateral but have viable export orders.
- Risk Sharing with Lending Institutions: Instead of full risk transfer, the scheme follows a risk-sharing model, where a predefined portion of the credit risk is guaranteed by the government. This encourages banks to increase export lending to MSMEs.
- Integrated with Export Promotion Mission (EPM): This collateral guarantee operates as a credit-enablement pillar of EPM, complementing interest support and trade facilitation measures.
Financial Assistance
Note - Exact guarantee percentage and cap: Needs confirmation from latest DGFT / Finance Ministry circular.
Eligibility Criteria
Who can apply:
- MSMEs with valid Udyam Registration
- Exporters holding a valid Import Export Code (IEC)
- MSMEs availing export credit from scheduled banks or notified financial institutions
Who cannot apply:
- Non-exporting entities
- Enterprises without IEC
- Loans not linked to export activity
- Large enterprises outside MSME definition
Documents Required
- Udyam Registration Certificate
- Import Export Code (IEC)
- Export order / contract / invoice
- KYC documents of business owners
- Bank statements & financials
- GST registration (if applicable)
Application Procedure for the scheme
Option 1: Apply with Bullit (Recommended)
Click here to start instantly with guided support. Our team verifies eligibility, compiles documents, and coordinates with lenders for guarantee-backed export credit. Track progress while focusing on your business, we manage the process end-to-end.
Recommended for: Lean teams seeking faster access to collateral-free export finance.
Option 2: Through Lending Institution (Official Route)
- Approach your bank/NBFC for export credit.
- Apply under the collateral guarantee coverage once notified.
- Lender processes the loan with guarantee support as per scheme norms.
Note - (A centralized digital platform is expected post notification.)
Power Combo with the scheme