Particulars

Guidelines

Eligibility, Scope and Coverage

• All Micro, Small and Medium Enterprise (MSME) manufacturer exporters and merchant exporters having a valid and active Importer Exporter Code (IEC) and valid MSME Udyam Registration Number shall be eligible for collateral support under the scheme.
• Export credit facilities extended by lending institutions in accordance with the RBI Master Directions on Pre-Shipment and Post-Shipment Export Credit shall be eligible for coverage under this component. 
• The scheme shall cover exports falling under the notified positive list of tariff lines at the Harmonised System (HSN) six-digit level by DGFT. Currently, DGFT, vide Trade Notice No. 21/2025-26 dated 02.01.2026, has notified 4,139 tariff lines eligible for coverage under the scheme. The list of eligible tariff lines shall be subject to revision/modification by DGFT from time to time
• The Mission comprises two sub-schemes, namely Niryat Protsahan – focused on strengthening access to affordable trade finance, and Niryat Disha – aimed at enhancing export preparedness and improving market competitiveness

Type of Credit Facilities Covered

• The scheme shall be applicable only for export-related working capital facilities sanctioned without collateral security and third-party guarantee and shall not cover domestic working capital loans. However, in case of Partial Collateral Security / Hybrid Model, the lending institutions are allowed to obtain collateral security for a portion of the credit facility, while the remaining unsecured portion may be covered under the scheme.

Implementing Agency of the scheme

The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) is the implementing agency for the scheme.

Eligible Member Lending Institutions (MLIs)

Scheduled Commercial 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. Indian Bank is an eligible Member Lending Institution under the scheme.

Guarantee Coverage & Maximum Ceiling

• The extent of Guarantee coverage under the scheme shall be as follows.

1. For Micro and Small Enterprises (MSEs):

2. For Medium Enterprises:

• For Micro and Small Enterprise exporters, the guarantee coverage under this scheme shall be available, in addition to the guarantee coverage available under existing schemes of CGTMSE. For Medium Enterprise exporters the support under this scheme is shall be provided exclusively through DGFT by CGTMSE.

Other Conditions

• The applications received under the scheme shall be appraised and evaluated based on prudent banking practices, the Bank’s internal assessment mechanisms, and due diligence to ensure selection of commercially viable proposals.
• Facilities sanctioned under the scheme shall be disbursed only after receipt of guarantee confirmation from CGTMSE.
• The field functionaries shall ensure close monitoring of borrower accounts and safeguard the primary securities obtained in respect of credit facilities in a valid, enforceable, and satisfactory condition.
• Guarantee claims under the scheme shall be submitted to the Trust in the prescribed form, manner, and within the timelines stipulated by the Trust.
• Settlement of guarantee claims by the Trust shall not absolve the Bank of its responsibility towards recovery of the outstanding dues from the borrower. The Bank shall continue to exercise all necessary recovery measures and maintain its right of recourse against the borrower for recovery of the entire outstanding amount, including actions as advised by the Trust.
• The directions/instructions issued by the Trust from time to time for recovery of dues in guaranteed accounts shall be complied, safeguarding the interest of the Trust as guarantor.
• In addition to the above, all applicable guidelines issued under the Special Credit Guarantee Scheme by CGTMSE/DGFT, including subsequent amendments or modifications issued from time to time, shall be complied with.
• The Bank’s existing guidelines issued from time to time, including provisions of the Credit Policy and applicable RBI guidelines, shall also be adhered to.
• The existing Standard Operating Procedures (SOPs) of the Bank relating to NPA marking and submission of guarantee claims under Credit Guarantee schemes, and guidelines defining the responsibilities of officers and Business units shall be followed. Any subsequent modifications/amendments issued from time to time shall also be complied with.