Centre Launches Rs 7,295 Crore Export Finance Support Schemes For Msmes

(MENAFN- KNN India) New Delhi, Jan 5 (KNN) The government launched export finance support schemes worth Rs 7,295 crore to improve access to trade credit for micro, small and medium exporters over the next six years (FY26–31), officials said. The measures are part of the Export Promotion Mission approved by the Union Cabinet in November 2025.

Interest Subvention to Lower Cost of Export Credit

A key component is the 'Interest Subvention for Pre- and Post-Shipment Rupee Export Credit' scheme with an outlay of about Rs 5,181 crore over six years. The scheme will help MSME exporters access rupee-denominated working-capital finance at competitive rates, below market interest costs, reported BS.

An initial provision will also clear about Rs 830 crore of arrears. A base interest subvention of 2.75 percent has been provided, with additional incentives for exports to under-represented or emerging markets, subject to operational readiness.

The annual benefit is capped at Rs 50 lakh per firm, and the scheme will cover roughly 75 percent of tariff lines. Guidelines will be issued by the Reserve Bank of India (RBI) and the Directorate General of Foreign Trade (DGFT).

Collateral Support Scheme to Boost Lending

The second initiative is a Rs 2,114-crore collateral support scheme for export credit, designed to provide credit guarantee support for export-linked working capital loans to MSMEs.

Under this measure, exporters can receive a collateral guarantee of up to Rs 10 crore per firm, with coverage of up to 85 percent for micro and small exporters and up to 65 per cent for medium enterprises.

The scheme aims to complement existing credit guarantee mechanisms and increase bank lending to export-oriented MSMEs. Detailed guidelines will be notified by the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), starting with a pilot phase before full integration.

Part of Broader Export Strategy

These export credit support schemes are the second major component of the government's export push. They follow the Rs 4,531 crore Market Access Support (MAS) scheme launched on December 31, 2025, which is aimed at helping exporters expand into new international markets and product categories.

The combined measures reflect a wider effort to address trade finance challenges, especially amid global economic headwinds.

(KNN Bureau)

MENAFN05012026000155011030ID1110555333