Government to launch credit guarantee scheme for exporters
The Indian government is planning a fresh credit guarantee scheme to help micro, small, and medium enterprises (MSMEs) that export goods.
The move is meant to ease the pressure from steep US tariffs, letting exporters access loans up to ₹100 crore with lower upfront costs.
It's all about making it simpler for these businesses to get funding and explore new markets.
Building on existing MSME loan scheme
This new initiative borrows from the Mutual Credit Guarantee Scheme (MCGS) launched earlier this year for manufacturers, which covers 60% of MSME loans.
Expect even easier terms here, like smaller deposits, for exporters impacted by US tariffs.
Scheme aims to mitigate US tariff impact on exporters
US tariffs introduced in August 2024 have made things tough for industries like textiles and gems & jewelry.
This scheme is designed to help them bounce back and stay competitive globally.