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New Export Scheme: The government has announced two schemes to save exporters from the impact of high tariffs. In this, assistance of Rs 20 thousand crore has been announced under the Export Credit Guarantee Scheme. Exporters can be given loans up to 20 percent of their working capital or a maximum of Rs 50 crore.
New Delhi. US President Donald Trump may have tried to harm businessmen by imposing 50 percent tariff on India, but the government has made complete arrangements to protect them from it. In the cabinet meeting held recently under the leadership of Prime Minister Narendra Modi, two schemes worth Rs 45 thousand crore were announced for exporters. Now, under the scheme, it has also been announced to provide guaranteed loan up to a maximum of Rs 50 crore to exporters. Not only this, businessmen will have to pay only 1 percent less than the current interest rate on this loan.
Under the recently announced Exporter Credit Guarantee Scheme, the government has made arrangements to provide additional loans up to Rs 50 crore to exporters at concessional rates. The government has launched a credit guarantee scheme for exporters to address short-term imbalances on the finance front and to explore new potential markets. Its objective is to provide 100 per cent guarantee for additional credit facility extended to exporters requiring additional working capital.
How will the loan limit be decided?
Under this scheme, exporters can utilize up to 20 per cent of the sanctioned export working capital limit, while indirect exporters will get up to 20 per cent of the working capital limit, not exceeding Rs 50 crore. On the date of issue of guidelines, the interest rate will be one percent less than the existing facility. The tenure of the loan under the scheme will be four years from the date of first disbursement and will also include a moratorium period of one year. Meaning, if the exporter wishes, he can pause his EMI for one year.
How long will the plan continue?
This scheme is being implemented by National Credit Guarantee Trustee Company Limited. (NCGTC) guidelines will remain in force from the date of issue till March 31, 2026 or till the issue of guarantee up to Rs 20,000 crore, whichever is earlier. The Union Cabinet on Wednesday approved the launch of Credit Guarantee Scheme for Exporters (CGSE) with the aim of providing relief to exporters. Under this, 100 percent loan guarantee coverage will be provided by NCGTC to the Member Lending Institutions (MLIs) so that additional credit facilities up to Rs 20,000 crore can be provided to eligible exporters including MSMEs.
Government has given the gift of 2 schemes
Exporters are facing problems due to America’s heavy duty on Indian exports. America has imposed a heavy duty of 50 percent on goods exported from India, which is effective from August 27. To save exporters from the impact of high tariffs, the government has announced two schemes. In this, Rs 20 thousand crore will be provided under one scheme, while there is a preparation to allocate Rs 25 thousand crore in the second scheme. Together, both the schemes have announced a total assistance of Rs 45 thousand crores.
