New Scheme Launched for MSME Exporters

05-Jan-2026 05:00 PM

New Delhi: The Directorate General of Foreign Trade (DGFT), an arm of the Union Ministry of Commerce, has launched two separate trade finance schemes aimed at extending interest subvention and collateral support for exports of products from the Micro,

Small and Medium Enterprises (MSME) sector. These schemes are part of the government's flagship export promotion mission.

Under the interest subvention plan, the government will provide a 2.75 percent rebate on pre-shipment and post-shipment credit to MSME exporters.

This credit scheme will cover 75 percent of tariff lines. Under this scheme, each exporting firm will be eligible to avail interest subvention on loans up to a certain amount per year.

According to the Ministry of Commerce, the Reserve Bank of India (RBI) will soon issue detailed guidelines for this scheme.

Similarly, under the collateral support scheme, the government will extend guarantee coverage up to 85 percent for exporters in the micro and small enterprise sector.

Currently, this guarantee coverage is limited to 75 percent, while for medium-sized enterprises it is limited to 65 percent. This will also provide relief to new exporters.