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Lenders have sanctioned over INR 3,360 crore to 774 exporters within the first month of the Credit Guarantee Scheme for Exporters, highlighting strong uptake amid global trade pressures. Launched in December 2025, the INR 20,000 crore scheme offers 100 per cent credit guarantee to help exporters, including MSMEs, manage liquidity and expand into new markets. Applications worth nearly INR 8,800 crore were received in the initial phase. The government said the scheme aims to improve export competitiveness and cushion businesses against external headwinds. Alongside this, credit support for MSMEs and improving bank profitability and asset quality are strengthening India's export, manufacturing, and overall economic outlook.
Lenders have sanctioned INR 3,361.83 crore to 774 exporters within a month under the INR 20,000 crore Credit Guarantee Scheme for Exporters (CGSE), aimed at supporting Indian exporters amid rising global trade pressures, including higher tariffs in the United States. Advertisement
The scheme, approved by the Union Cabinet on November 12, was made operational from December 1, 2025. It provides 100 per cent credit guarantee coverage through the National Credit Guarantee Trustee Company Limited to member lending institutions for extending additional credit facilities to eligible exporters, including micro, small and medium enterprises.
According to the Department of Financial Services under the Ministry of Finance, applications worth INR 8,764.81 crore were received from 1,840 exporters as of January 2, 2026. Out of these, lenders sanctioned INR 3,361.83 crore across 774 applications during the first month of the scheme's implementation.
The CGSE allows banks and financial institutions to extend additional funding to exporters during a period of external headwinds. The objective is to help exporters diversify markets, manage liquidity pressures and improve global competitiveness. The scheme will remain valid until March 31, 2026, or until guarantees worth INR 20,000 crore are issued, whichever is earlier.
The department also shared progress under the Mutual Credit Guarantee Scheme for MSMEs. This scheme provides credit guarantees to encourage lenders to offer additional credit of up to INR 100 crore to MSME borrowers for the purchase of plant, machinery and equipment. The focus is on supporting manufacturing activity by improving access to capital expenditure funding.
As of December 2025, banks had sanctioned INR 16,836 crore under the MSME scheme against nearly 8.96 lakh applications. Officials said the scheme is helping small businesses invest in capacity expansion and technology upgrades.
Alongside credit guarantee initiatives, the Department of Financial Services highlighted improvements in the overall performance of the banking sector. Scheduled commercial banks recorded their highest-ever aggregate net profit of INR 4.01 lakh crore. Public sector banks posted an aggregate net profit of INR 1.78 lakh crore in 2024-25, while profits for the first half of 2025-26 stood at INR 0.94 lakh crore.
Public sector banks have also seen sustained balance sheet growth. Global deposits increased from INR 71.95 lakh crore in March 2015 to INR 146.27 lakh crore in September 2025, while global advances rose from INR 56.16 lakh crore to INR 114.85 lakh crore during the same period.
Asset quality indicators continued to improve. The gross non-performing assets ratio of public sector banks declined to 2.30 per cent in September 2025 from 4.97 per cent in March 2015 and from a peak of 14.58 per cent in March 2018. Capital adequacy has also strengthened, rising to 15.96 per cent in September 2025 from 11.45 per cent in March 2015.
Officials said the combination of targeted credit support schemes and improved banking fundamentals is expected to support exports, manufacturing activity and broader economic stability in the current financial year.
Source: PTI
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