Circulars

Introduction of the Credit Guarantee Scheme for Exporters (CGSE) by Government of India: Regarding
 

 

 

CHEMEXCIL
Basic Chemicals, Cosmetics & Dyes Export Promotion Council
(Set-up by Ministry of Commerce and Industry, Govt of India)
Jhansi Castle, 4th floor, 7-Cooperage Road,   Mumbai - 400 001.

Tel:  +91-22- 69821200-206
info@chemexcil.in Web : https://chemexcil.in

EPC:LIC:CIR:POL:PW-DG: MIS-1                                                                  November 17, 2025


All Members of the Council 

 

Introduction of the Credit Guarantee Scheme for Exporters (CGSE) by Government of India: Regarding

 

Dear Members,

As you are aware that The Government of India Cabinet has recently approved Credit Guarantee Scheme for Exporters (CGSE), up to Rs. 20,000 crore collateral-free credit support with 100% credit guarantee through NCGTC (https://www.pib.gov.in/PressReleasePage.aspx?PRID=2189389) which will benefits to both MSME & non-MSME exporters resulting in support of liquidity, market diversification, employment, and enhance global competitiveness of Indian exporters

The broad objective is to support Indian exporters to meet their additional working capital requirement to mitigate short-term financial mismatched, and encourage exporters to explore new and emerging markets.

In view of the above CHEMEXCIL is pleased to share the key highlights of the scheme for the benefit of our member exporters. (Copy enclosed)

Background of the Scheme

India’s export sector, particularly MSMEs and sector-specific exporters, often faces liquidity constraints due to market fluctuations, delayed payments, and the need to enter new international markets.

To provide relief and ensure uninterrupted export operations, the Government has launched the Credit Guarantee Scheme for Exporters (CGSE).

The scheme provides 100% guarantee coverage for additional credit facilities extended by eligible lending institutions to both direct and indirect exporters. This measure is expected to ease access to credit, reduce financing risks for banks, and enhance the competitiveness of Indian exporters globally.

Features of the CGSE

  • Implementing Agency: National Credit Guarantee Trustee Company (NCGTC)

  • Eligible Borrowers: Direct and indirect exporters (eligibility criteria to be finalised by the Management Committee of the Scheme)

  • Quantum of Support:

    • Up to 20% of sanctioned export working capital limit for direct exporters

    • Up to 20% of working capital limit for indirect exporters

  • Maximum Loan Amount: Up to rupees 50 crore per borrower

  • Tenor: 4 years (including 1-year moratorium)

  • Guarantee Fee: Nil

  • Interest Rate: 1% below interest rate applicable on existing facility (as on the date of issue of guidelines)

  • Security: Charge on existing securities; no additional collateral required

  • Eligible Lending Institutions: Scheduled Commercial Banks, SUCBs, NBFCs (RBI-registered), and specified Financial Institutions

  • Validity of Scheme: Upto 31st March 2026 or until guarantees amounting to ?20,000 crore are issued, whichever is earlier.

The detailed operational guidelines will be issued by NCGTC in due course.

Members are requested to review the scheme details, contact their respective banks or lending institutions to understand eligibility and avail benefits

 

Thanks and Regards

Raghuveer Kini
Director General
CHEMEXCIL

Encl : Scheme (CGSE)
PIB GCSE