Parliament Question: Credit Guarantee Scheme for Exporters (CGSE)

GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES LOK SABHA UN-STARRED QUESTION NO. 266 ANSWERED ON MONDAY, 2nd FEBRUARY, 2026/ MAGHA 13, 1947 (SAKA) Credit Guarantee Scheme for Exporters (CGSE) 266. SHRI MANICKAM TAGORE B: Will the Minister of FINANCE be pleased to state: a) whether the Government has made any assessment regarding the distribution of Credit Guarantee Scheme for Exporters (CGSE) sanctions to determine whether MSME exporters across regions are benefitting equitably from the scheme; b) if so, the details of beneficiaries, sector/State wise particularly in Tamil Nadu, district wise; c) the reason behind the large gap between applications received and amount sanctioned within a supposedly fast track emergency credit framework, given that applications worth Rs. 8,764 crore were received; d) the details of the plan proposed by the Government to monitor end use of funds under CGSE to ensure credit is deployed for export continuity and competitiveness rather than balance sheet restructuring alone; e) the effectiveness of equipment financing when demand uncertainty and export volatility discourage MSMEs from making fresh capital investments under the MCGS-MSME scheme (Mutual Credit Guarantee Scheme-Micro, Small and Medium enterprises); and f) the average loan size and the manner in which it meaningfully supports productivity upgrades with nearly 8.96 lakh MSME applications sanctioned under MCGS-MSME or merely supports incremental survival financing? ANSWER THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY) (a) The Credit Guarantee Scheme for Exporters (CGSE) is demand-driven and is accessible to eligible exporters across all States and Union Territories through member lending institutions, without any regional cap. In view of the vulnerability of MSMEs to market uncertainties, coverage has been extended to both direct and indirect MSME exporters to ensure wider outreach and equitable access to liquidity support across the country.(b) The State-wise (Table 1) and sector-wise (Table 2) details of beneficiaries, along with district- wise details (Table 3) for Tamil Nadu, as on 21.01.2026, are enclosed as an Annexure. (c) Applications under the CGSE can be submitted online through the Jan Samarth portal on a 24×7 basis. Applications received are forwarded to the respective member lending institutions for scrutiny and appraisal in accordance with the scheme guidelines. Sanction of assistance under CGSE is subject to due diligence by the lenders, including verification of eligibility and completion of requisite documentation. (d) As per CGSE guidelines, the additional credit extended under the scheme is required to be utilised for working capital purposes. The sanctioning of credit facility is a credit decision to be taken by the MLI based on the scheme guidelines. The aforesaid additional credit support under CGSE will help the exporters overcome short-term liquidity mismatches, sustain production, improve competitiveness and explore new potential markets. (e) and (f) The Mutual Credit Guarantee Scheme for MSMEs (MCGS- MSME) provides guarantee coverage of up to ₹ 100 crores to Member Lending Institutions (MLIs) to facilitate term loans to Micro, Small and Medium Enterprises for the viable projects. The Scheme aims to give a boost to manufacturing and provide an incentive to Member Lending Institutions (MLIs) to enable availability of additional credit facility upto ₹ 100 crore to MSME borrowers for purchase of Equipment/ Plant & Machinery. The Scheme envisages to provide 60% guarantee cover to the MLIs for any losses suffered by them due to non-repayment of the funding under the scheme by the borrowers. As informed by National Credit Guarantee Trustee Company Ltd. (NCGTC), the average amount of loan guaranteed under the Scheme is ₹7.54 crore. *****Annexure Table1 - State wise applications sanctioned Amount sanctioned Name of the State No of Sanctioned Applications (Rs in crore) Tamil Nadu 275 971.87 Uttar Pradesh 225 508.91 Maharashtra 116 792.54 Delhi 71 265.02 Rajasthan 66 235.50 Kerala 41 171.72 West Bengal 33 156.31 Gujarat 32 107.89 Haryana 40 124.23 Andhra Pradesh 33 555.10 Karnataka 31 115.14 Punjab 28 91.98 Madhya Pradesh 13 56.29 Telangana 7 48.50 Odisha 9 164.30 Himachal Pradesh 3 17.12 Uttarakhand 1 0.12 Chandigarh 1 1.50 Grand Total 1,025 4,384.02 Table2 - Sector wise applications sanctioned No of Amount Industry Sanctioned sanctioned Applications (Rs in crore) Ready-made garments of all textiles 257 784.73 Engineering Goods 103 394.99 Cotton Yarn / Fabs. / Madeups, Handloom Products Etc 110 445.05 Handicrafts Excl. Hand Made Carpet 126 230.00 Marine Products 71 1,051.64 Gems and Jewellery 64 441.40 Carpet 77 135.47 Leather and Leather Manufactures 48 210.51 Man-Made Yarn/Fabs./Madeups Etc 22 57.39 Plastic and Linoleum 21 98.04 Other Cereals 4 5.55 Mica, Coal and Other Ores, Minerals Including Process 25 106.59 Organic and Inorganic Chemicals 23 156.95 Ceramic Products and Glassware 15 26.83Fruits and Vegetables 17 49.95 Spices 9 56.12 Rice 6 26.57 Cereal Preparations and Miscellaneous Processed Item 8 50.25 Jute Mfg. Including Floor Covering 3 3.46 Meat, Dairy and Poultry Products 2 4.70 Oil Seeds 5 17.68 Coffee 5 11.75 Tea 1 0.01 Tobacco 1 3.00 Oil Meals 1 1.20 Cashew 1 14.20 Grand Total 1,025 4,384.02 Table3 - District wise applications sanctioned in Tamil Nadu No of Sanctioned Amount sanctioned Name of the Branch City Applications (Rs in crore) Tiruppur 129 336.26 Karur 36 69.93 Coimbatore 24 87.57 Chennai 21 99.23 Erode 15 85.41 Madurai 14 57.03 Virudhunagar 6 11.72 Thoothukkudi 4 55.60 Tuticorin 6 31.46 Salem 2 4.60 Ranipet 4 31.73 Dindigul 1 3.40 Krishnagiri 1 3.40 Rajapalayam 2 20.66 Thiruchirapalli 1 0.20 Ramanathapuram 1 2.78 Avinashi 2 2.24 Bhiwani 1 6.30 Theni 3 62.00 Thanjavur 1 0.25 Dharmapuri 1 0.10 Grand Total 275 971.87