Boost for MSMEs: DGFT Introduces Collateral Support to Ease Access to Export Credit [Read Notification]
The scheme shall provide credit guarantee coverage of up to 85% for Micro and Small exporters, and 65% for Medium exporters, which is subject to notified ceilings.
![Boost for MSMEs: DGFT Introduces Collateral Support to Ease Access to Export Credit [Read Notification]](https://images.taxscan.in/h-upload/2026/01/07/2117560-boost-for-msme-taxscan.jfif "Boost for MSMEs: DGFT Introduces Collateral Support to Ease Access to Export Credit [Read Notification]")
The Directorate General of Foreign Trade (DGFT) has launched a new system to provide Collateral Support for Export Credit as per the objective of the Export Promotion Mission (EPM) - NIRYAT PROTSAHAN The primary objective of the mission is to enhance access to formal credit for exporters in the Micro, Small & Medium Enterprises (MSME) bracket access by...
The Directorate General of Foreign Trade (DGFT) has launched a new system to provide Collateral Support for Export Credit as per the objective of the Export Promotion Mission (EPM) - NIRYAT PROTSAHAN
The primary objective of the mission is to enhance access to formal credit for exporters in the Micro, Small & Medium Enterprises (MSME) bracket access by offering guarantee-backed collateral coverage, now facilitated through the DGFT.
The announcement came through a trade notice dated 2 January 2026, and provides credit guarantee coverage of up to 85% for Micro and Small exporters, and 65% for Medium exporters, which is subject to notified ceilings.
The collateral guarantees are exclusively applicable to providing export-linked working capital loans, with a maximum guarantee limit of ₹10 crore per exporter for the financial year 2025-26.
The initiative is being rolled out on a pilot basis through the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) enables early access to exporters and also bids on stakeholder feedback for refining the final guidelines.
Eligible MSME exporters including both manufacturers and merchant exporters must mandatorily possess a valid Importer-Exporter Code (IEC) and an active Udyam registration to avail the benefits of the scheme.
The coverage will be extended only for export credit sanctioned by member lending institutions in accordance with the Reserve Bank of India’s Master Directions on Pre- and Post-Shipment Export Credit.
DGFT has also floated a structured framework to receive stakeholder consultation, allowing exporters, financial institutions and trade bodies to submit feedback on the draft guidelines within 30 days of issuance at epm-dgft@gov.in.
The stakeholder consultation period will run simultaneously alongside the pilot phase, after which the guidelines will be finalised and notified formally under the ForeignTrade Policy (FTP) 2023 and Handbook of Procedures (HBP).
The initiative, pushed under the NIRYAT PROTSAHAN is an export promotion mission which aims to enhance Indian exporters’ competitiveness in the global market through the provision of improved access to trade finance, streamlined procedural frameworks and better risk mitigation mechanisms.
The trade notice has been issued under the authority of B Kruti, Deputy Director General ofForeign Trade.
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