Source: BS
Context:
To improve access to affordable credit for export-oriented MSMEs, the government has rolled out new credit-linked support schemes, aimed at strengthening liquidity, boosting exports, and enhancing bank lending.
Key Announcement
- The Government of India has launched two schemes worth ₹7,300 crore to ease financing constraints for Micro, Small and Medium Enterprises (MSMEs).
- The schemes are part of a broader effort to support export growth and MSME competitiveness.
Scheme 1: Collateral Support for Export Credit
- Total outlay: ₹2,114 crore
- Objective:
- Provide credit-guarantee support for export-linked working capital loans to MSME exporters
- Key Features:
- Collateral guarantee up to ₹10 crore per firm
- Guarantee coverage:
- Micro & Small exporters: up to 85%
- Medium exporters: up to 65%
- Nature:
- Designed to complement existing credit guarantee mechanisms
- Aims to increase bank lending to export-oriented MSMEs
- Rollout:
- Detailed guidelines to be notified by CGTMSE
- Initial pilot phase, followed by integration into a revised export promotion framework
Scheme 2: Credit Support under Export Promotion Framework
- Part of the broader Export Promotion Mission measures
- Detailed operational guidelines to be issued by the RBI
- Focus:
- Lowering the cost of credit
- Improving liquidity access for MSMEs engaged in exports
