Credit guarantee for exporters: ₹3,141 crore sanctioned in the first month

What happened

• The Credit Guarantee Scheme for Exporters (CGSE), run by the Department of Financial Services, became operational on 1 December 2025 through the Jan Samarth portal [PIB].
• By 31 December, 1,788 applications worth ₹8,599 crore had come in and 716 worth ₹3,141 crore were sanctioned [PIB].

Background

• The scheme offers up to ₹20,000 crore of extra collateral-free credit, with the government giving a 100% guarantee; exporters can get up to 20% of their existing export credit or working capital [PIB].
• PIB puts exports at nearly 21% of GDP, with MSMEs contributing nearly 45% of exports [PIB].

Why it matters

• Tariff shocks hit exporters through cash flow first. A guarantee lets banks lend without fresh collateral, which is what small exporters lack.