Export Sops
Govt launches trade finance schemes for MSME exporters under export mission
This story was originally published at 17:33 IST on 2 January 2026
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NEW DELHI – The Directorate General of Foreign Trade on Friday rolled out two separate trade finance plans to extend interest subvention and collateral support on credit to exporters from micro, small, and medium enterprises. The plans are part of the government's flagship Export Promotion Mission.
Under the interest subvention plan, the government will offer a 2.75% rebate on pre- and post-shipment credit to MSME exporters. The credit scheme will cover 75% tariff lines, the commerce ministry said. Each exporting firm will be eligible for a subvention of up to INR 5 million per year. The Reserve Bank of India will soon issue detailed guidelines for the scheme, the commerce ministry said.
Under the collateral support plan, the government will extend guarantee coverage of up to 85% to micro and small exporters, including 75% under the government's already operational credit guarantee scheme, and 65% to medium exporters. Each firm will be eligible for a collateral guarantee of up to INR 100 million per year.
The Cabinet approved the Export Promotion Mission in November for a six-year period, with an outlay of INR 250.60 billion, of which the commerce ministry has earmarked INR 51.81 billion for the interest subvention plan and INR 21.14 billion for collateral support. To avail of the benefits, eligible exporters with a valid import-export license must submit an intent filing on the DGFT portal and obtain a unique ID. The exporters can then approach the bank, link their account to the generated ID and avail credit benefits.
Banks can file the subvention claim on the DGFT portal. The claim will be approved and settled by the RBI. In the case of collateral support, the Credit Guarantee Fund Trust for Micro and Small Enterprises will extend the guarantee coverage to banks. End
Reported by Krity Ambey
Edited by Saji George Titus
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