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Government of India Ministry of Commerce & Industry Department of Commerce Directorate General of Foreign Trade Vanijya Bhawan, New Delhi Trade Notice No. 21/2025-26 Dated: 02nd January 2026 Subject: Launch of Collateral Support for Export Credit under Export Promotion Mission (EPM) – NIRYAT PROTSAHAN – regarding The Collateral Support for Export Credit component under the Export Promotion Mission (EPM) – NIRYAT PROTSAHAN is hereby launched with immediate effect. The intervention aims to improve access to formal export credit for Micro, Small and Medium Enterprises (MSMEs), particularly exporters facing constraints in providing collateral security. Under this component, eligible MSME exporters may avail credit guarantee support for export-related working capital loans extended by member lending institutions, in accordance with the notified ceilings and coverage parameters. 2. Implementation Framework and Key Benefits for Exporters The intervention is being operationalised through the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) on a pilot basis. Salient features for exporters include: i. Credit guarantee coverage of up to 85% for Micro and Small exporters and 65% for Medium exporters, subject to notified ceilings; ii. Maximum guarantee limit of ₹10 crore per exporter for FY 2025–26; iii. Coverage limited to export-linked working capital credit; iv. Applicability to MSME exporters engaged in merchandise exports under the notified positive list of HSN six-digit tariff lines. 3. The detailed Guidelines for Collateral Support for Export Credit are enclosed at Annexure-I. The positive list of eligible HSN six-digit tariff lines is enclosed at Annexure-II. The list of eligible Member Lending Institutions through which exporters may avail the collateral guarantee support is provided at Annexure-III. The procedure for online filing of intent by eligible MSME exporters on the DGFT portal, including step-by-step application requirements, is enclosed at Annexure- IV. 4. Pilot Roll-out and Stakeholder Consultation The component is being implemented on a pilot basis to enable early access for exporters and to facilitate stakeholder feedback. In terms of paragraph 1.07A of the Foreign Trade Policy (FTP) 2023, the enclosed Guidelines are also being issued for stakeholder consultation. Accordingly, all concerned stakeholders are invited to submit comments and suggestions on the draft Guidelines within 30 days from the date of issuance of this Trade Notice at epm- dgft@gov.in. 5. The consultation process shall run concurrently with the pilot implementation. Feedback received from stakeholders, along with operational learnings from the pilot phase, shall be examined in a structured manner. Based on the same, the Guidelines shall be suitably refined and thereafter formalised through appropriate notifications under the FTP/HBP framework. This Trade Notice is issued with the approval of the Competent Authority. B Kruti Deputy Director General of Foreign Trade (Issued from F.No. 01/02/60/AM-26/EPM) B KRUTI Digitally signed by B KRUTI Date: 2026.01.02 18:19:13 +05'30' ANNEXURE-I To TRADE NOTICE DRAFT PROVISIONS FOR FOREIGN TRADE POLICY (FTP) Section X- Collateral Support for Export Credit X.1 Objective a. The objective is to facilitate access to formal credit for MSME exporters, especially those lacking sufficient collateral, by providing credit guarantee support. b. This initiative under EPM aims to reduce the credit risk for lending institutions, enabling greater flow of export credit to MSME exporters. X.2 Scope and Coverage a. The initiative will provide collateral support for working capital export credit extended by eligible member lending institutions to MSMEs with limited collateral security and third- party guarantee. b. Collateral support shall be available to eligible MSME exporters to obtain pre- and post- shipment export credit from the member lending institutions. c. The detailed operational framework, eligibility criteria, and procedures for application, approval and monitoring shall be specified in Chapter X of the Handbook of Procedures (HBP). DRAFT PROVISIONS FOR HANDBOOK OF PROCEDURES (HBP) X.1. Eligibility, Scope and Coverage a. All MSME manufacturer exporters and merchant exporters holding a valid active Importer- Exporter Code (IEC) and a valid MSME Udyam Registration Number shall be eligible to receive collateral support for export credit. b. Export credit extended by lending institutions in accordance with the Reserve Bank of India (RBI) Master Directions on Pre- and Post-Shipment Export Credit shall qualify for support under this component. c. Collateral Support shall be available in respect of exports falling under a notified positive list of tariff lines at the Harmonised System (HSN) six-digit level. d. The positive list shall be reviewed periodically based on objective parameters such as sectoral MSME concentration, export concentration ratios, labour intensity, and other relevant considerations, and shall not be linked to minimum export threshold. X.2 Instrument Supported Support under this initiative shall be available to loans sanctioned with limited collateral security and third-party guarantee for export-related purposes and shall not apply to domestic working capital loans. X.3. List of Eligible Member Lending Institutions Scheduled Commercial Banks (Public Sector Banks, Private Sector Banks, and Foreign Banks) and select Financial Institutions registered with Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) will be eligible as Member Lending Institutions (MLIs) under the Initiative. A list of eligible Member Lending Institutions is provided in Appendix-C. X.4. Nature of Assistance a. Collateral guarantee coverage shall be provided up to a notified maximum percentage of the sanctioned loan amount under this intervention. For Micro and Small exporters, such collateral guarantee shall be extended in addition to, and not in substitution of, any guarantee coverage available under existing CGTMSE schemes. For Medium exporters, the collateral guarantee support shall be provided exclusively under this intervention. b. Support shall be extended at an annual guarantee fee as per the rates applicable under Credit Guarantee Scheme for Banks (CGS -I) of CGTMSE and as amended from time to time. c. The outstanding collateral guaranteed exposure for each beneficiary MSME exporter shall be capped at a specified level, as notified from time to time. The total amount of guarantees extended over the course of the year may exceed this cap, subject to settlement of earlier loans and issuance of fresh eligible credit facilities. Appendix - A Guidelines for Collateral Support for Export Credit 1. Sub-Committee on Trade Finance a. Sub-Committee on Trade Finance (hereafter referred to as the ‘Sub-Committee’) shall be constituted for recommendation of activities and monitoring of implementation under Collateral Support for Export Credit. The composition of the Sub-Committee shall be as follows: Sl. No. Officer Concerned Position 1. Development Commissioner, Ministry of MSME Co-Chair 2 Joint Secretary or Equivalent, Trade Finance Division, DoC Co-Chair 3 Joint Secretary or Equivalent, EPM Section, DGFT Member 4. Joint DGFT, EPM Section, DGFT Convenor 5. Representative of IFD, Department of Commerce Member 6. Representative of the Department of Financial Services, Ministry of Finance (not below the rank of Deputy Secretary) Member 7. Representative of the Credit Guarantee Trust Fund for Micro and Small Enterprises (CGTMSE) Invitee 8. Representatives of EXIM Bank Invitee 9. Representative of Export Credit Guarantee Corporation of India (ECGC) Invitee 10. Representative of the India Banks Association (IBA) Invitee 11. Representative of the International Financial Services Centres Authority (IFSCA) Invitee 12. Representatives of Factoring NBFCs Invitee b. The Sub-Committee may co-opt members or invite any other participants as and when required. c. The Export Promotion Mission (EPM) section (hereafter referred to as the ‘Sub- Committee Secretariat’) shall be the secretariat for Collateral Support for Export Credit including convening regular meetings of the Sub-Committee, implementation of required online systems, disbursement of grants and other related work.
