Credit Assistance for E-Commerce Exporters under Export Promotion Mission

Government of India Ministry of Commerce & Industry Department of Commerce Directorate General of Foreign Trade Vanijya Bhawan, New Delhi

Trade Notice No. 31/2025-26 Dated: 6th March 2026

Subject: Launch of Credit Assistance for E-Commerce Exporters under Export Promotion Mission (EPM) – NIRYAT PROTSAHAN – reg

The Credit Assistance for E-Commerce Exporters intervention under the Export Promotion Mission (EPM) – NIRYAT PROTSAHAN is hereby implemented with prospective effect.

2. The intervention seeks to enhance access to working capital for Micro, Small and Medium Enterprises (MSMEs) involved in international value chains through e-commerce, enabling them to manufacture goods in advance of anticipated demand and scale their participation in global markets.

3. Under this Intervention, credit guarantee cover will be available to banks for credit assistance extended by them in the form of Cash Credit, Overdraft, or other Working Capital facilities to eligible beneficiary entities, in accordance with the coverage parameters. These facilities will also be supported through interest subvention, in accordance with the notified ceilings.

4. The intervention is being operationalised on a pilot basis through the Export-Import Bank of India (Exim Bank). The detailed Policy framework is enclosed as ANNEXURE-I. The Operational and Procedural Guidelines is enclosed at ANNEXURE-II. The governance Structure is enclosed at ANNEXURE-III

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5. The intervention shall be operationalised on a pilot basis for feedback, institutional learning, and data-driven refinements. Guidelines for pilot implementation are enclosed at ANNEXURE-IV

6. The guidelines are further submitted for stakeholder feedback in accordance with Paragraph 1.07A of the Foreign Trade Policy (FTP) 2023. Stakeholders may submit comments and suggestions on the Guidelines within 30 days from the date of issuance of this Trade Notice, through email at epm-dgft@gov.in

This is issued with the approval of the Competent Authority.

B Kruti Deputy Director General of Foreign Trade

(Issued from F. No. 01/02/54/AM-26/EPM)

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ANNEXURE-I

POLICY FRAMEWORK FOR CREDIT ASSISTANCE FOR E-COMMERCE EXPORTERS

1. Objective a. The objective of the initiative is to enhance access to working capital for MSMEs, involved in international value chains through e-commerce, allowing them to procure goods ahead of anticipated demand and scale their presence in international markets. b. By providing flexible repayment options suited to the variable cash flow patterns of MSMEs, involved in international value chains through e-commerce, this intervention seeks to achieve scale by boosting of trade conducted through e-commerce channels.

2. Scope and Coverage a. Support under this intervention shall be available in the form of credit guarantee cover for Cash Credit, Overdraft or other Working Capital facilities extended by eligible banks and financial institutions. b. Financing under the intervention shall also be eligible for interest subvention support, in accordance with the rates notified. c. It shall be available exclusively to eligible MSMEs, involved in international value chains through e-commerce, subject to notified ceilings, conditions, and safeguards. d. The detailed operational framework—including eligibility conditions, application and claim procedures, reporting and monitoring requirements, and verification mechanisms -- are prescribed under ANNEXURE-II enclosed.

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ANNEXURE-II

OPERATIONAL AND PROCEDURAL GUIDELINES FOR CREDIT ASSISTANCE FOR E-COMMERCE EXPORTERS

1. Eligibility, Scope, and Coverage a. MSMEs (involved in international value chains through e-commerce) holding a active Importer-Exporter Code (IEC) (not in the Denied Entity List (DEL)) and a valid MSME Udyam Registration Number shall be eligible to receive credit assistance under the intervention. b. New MSMEs, involved in international value chains through e-commerce with prior domestic e-commerce experience shall also be eligible, subject to a minimum of one year of regular domestic e-commerce operations c. Support shall be available to the exporters as per above eligibility with: i. Proven track record of at least six months in exporting through postal or courier. ii. Current Inventory placed in overseas warehouses for e-commerce export fulfilment. iii. Current stock placed in warehouses set up under E-Commerce Export Hub (ECEH) facility.

2. Instruments Supported 2.1. Direct E-Commerce Credit Facility: Credit facility shall be extended by banks/financial institutions as Cash Credit/ Overdraft facilities, subject to the following eligibility conditions: a. MSME engaged in direct e-commerce exports through postal or courier or holding inventory in ECEHs for the purpose of exports. b. MSME borrower credit account shall be a standard asset, not overdue beyond the period permitted under applicable prudential norms and shall not be classified as stressed or non-performing by the lending institution. c. Also, the account shall not have been classified as a Special Mention Account–2 (SMA-2) or a Non-Performing Asset (NPA) at any time during the two years

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immediately preceding the date of application for the credit facility. d. The name of company and/or its directors/ partners/ proprietors/ promotors shall not be appearing in the lending institution’s defaulter list and in any of this Negative lists. e. Credit facility under this intervention may be extended only through Scheduled Commercial Banks .

2.2. Overseas Inventory E-Commerce Credit Facility: Working capital financing shall be extended by banks/financial institutions, subject to the following eligibility conditions: a. MSMEs involved in international value chains through e-commerce and holding inventory in overseas warehouses for e-commerce sales. b. MSME borrower credit account shall be a standard asset, not overdue beyond the period permitted under applicable prudential norms and shall not be classified as stressed or non-performing by the lending institution. c. Also, the account shall not have been classified as a Special Mention Account–2 (SMA-2) or a Non-Performing Asset (NPA) at any time during the two years immediately preceding the date of application for the credit facility. d. The name of company and/or its directors/ partners/ proprietors/ promotors shall not be appearing in the lending institution’s defaulter list and in any of this Negative lists. e. Credit facility under this intervention may be extended only through Scheduled Commercial Banks/ All India Financial Institutions.

3. Implementing Framework a. Exim Bank, along with the National Credit Guarantee Trustee Company (NCGTC), shall be the implementing agency for the intervention. b. Credit facility under Direct E-Commerce Credit Facility and Overseas Inventory E-Commerce Credit Guarantee Facility shall continue to be sanctioned by eligible entities in accordance with their own due diligence procedures. c. The subvention shall be provided at the applicable rate, on interest cost element. d. The MSME shall be provided an upfront subvention on the applicable interest rate provided, along with the sanction of the credit facility.

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e. The entities will be eligible to request for a claim for guarantee, which will be the applicable percentage of dues (including principal and interest, but excluding penal interest/ charges), after 90 days but no later than 360 days of the borrower account turning NPA. f. Any amendments, operational instructions, or clarifications relating to the obligations of eligible entities shall be advised suitably from time to time through notification/circular/FAQs.

4. Nature and Extent of Assistance a. Subvention rate shall be notified separately, after appropriate benchmarking with prevailing risk-free or reference rates in comparable economies. b. Two different levels of Guarantee coverage for Direct E-Commerce Credit Facility and Overseas Inventory E-Commerce Credit Facility respectively shall be notified separately. c. The notified subvention rate and guarantee coverage shall be reviewed on a bi-annual basis and revised, where necessary, preferably in the last week of March and September of each financial year with effect from 1st April and 1st October. d. An annual ceiling shall apply to the total subvention amount, and available credit facility that a beneficiary MSME (involved in international value chains through e-commerce) may receive in a given financial year. e. Given Support shall not be admissible in respect of deemed exports, as defined under Chapter 7 of the Foreign Trade Policy or for exports to Special Economic Zones (SEZs). f. Revised interest subvention rates, guarantee coverage as notified/advised from time to time, shall be applicable only to credit facility sanctioned and disbursed on or after the date of such notification/advice. g. The responsibility for ensuring that the aggregate subvention and credit facility availed remains within the prescribed annual ceiling shall rest with the beneficiary. Any excess claims above the admissible limit shall be liable to recovery and commensurate action.