**Executive Summary**
This document is the official response from the Ministry of Commerce and Industry to Unstarred Question No. 564 in the Lok Sabha, answered on March 2, 2026. The question pertains to the Export Credit Guarantee Corporation of India's (ECGC) role in supporting export credit for Micro, Small, and Medium Enterprise (MSME) exporters. The response details various initiatives undertaken by ECGC to enhance insurance cover and facilitate collateral-free export credit for MSMEs.
**Key Points / Main Content**
* **Enhanced Insurance Cover for Banks (WT-ECIB Scheme):**
* Insurance cover for banks under the Short Term Whole Turnover Export Credit Insurance for Banks (WT-ECIB) scheme enhanced to 90% (from 70%) for small exporter accounts.
* Applicable to aggregate export credit working capital limits up to ₹20 crore, ₹50 crore, and ₹80 crore.
* Allows banks to extend export credit at lower interest rates.
* **Extended 90% Cover Without Additional Premium:**
* 90% insurance cover extended for export credit loans up to ₹50 crore under WT-ECIB without additional premium.
* **Collateral-Free Export Credit:**
* 90% insurance cover under WT-ECIB provided for collateral-free working capital export credit limits up to ₹10 crore for Micro and Small Enterprise (MSE) exporters.
* Available across all sectors and commodities without additional premium.
* **Simplified Claims Procedure:**
* Procedure for settlement of claims under ST-ECIB simplified for net principal outstanding up to ₹10 crore.
* Reduced documentation requirements and faster turnaround time.
* **Direct Policies as Collateral:**
* ECGC enhanced insurance cover up to 100% for exporters who obtain policies directly from the Corporation.
* These policies can serve as collateral for banks extending export credit.
* **Statistics on Collateral-Free Credit:**
* 4987 export-accounts with limits up to ₹10 crore have been facilitated under the collateral-free scheme until January 22, 2026.
* **MSME Modification Requests:**
* ECGC has not received any requests for modifications from the MSME sector.
**Impact Analysis**
**Banks**
* **Impact**
Banks are able to offer export credit at lower interest rates and extend collateral-free loans to MSMEs due to the enhanced insurance cover provided by ECGC.
* **Action Required**
Banks should take advantage of the enhanced insurance cover and simplified claims procedures to offer more competitive export credit terms to MSME clients.
**MSME Exporters**
* **Impact**
MSMEs benefit from increased access to export credit, particularly collateral-free loans, and reduced insurance costs. The simplified claims procedure and direct policies offer further advantages.
* **Action Required**
MSMEs should explore the various initiatives offered by ECGC, including the enhanced insurance cover and collateral-free credit options, to improve their export competitiveness.
**ECGC**
* **Impact**
ECGC plays a more active role in facilitating export credit for MSMEs through the initiatives mentioned, enhancing its support for the sector.
* **Action Required**
ECGC should continue to monitor the effectiveness of these initiatives and respond to any feedback or modification requests from MSME exporters.
Key Entities Referenced
Export Credit Guarantee Corporation of India (ECGC): An organization playing a crucial role in helping and stimulating export credit among MSME exporters by providing insurance and facilitating collateral-free cover for export credit.
Short Term Whole Turnover Export Credit Insurance for Banks (WT-ECIB): A scheme under which ECGC provides insurance cover to banks to facilitate export credit for MSMEs.
Ministry of Commerce and Industry: The ministry responsible for matters related to export credit and the functioning of the Export Credit Guarantee Corporation of India.
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE AND INDUSTRY
DEPARTMENT OF COMMERCE
LOK SABHA
UNSTARRED QUESTION NO. 564
ANSWERED ON 03/02/2026
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA
564. SHRI BALASHOWRY VALLABHANENI:
Will the Minister of COMMERCE AND INDUSTRY (वाणिज्य एवं उद्योग मंत्री) be
pleased to state:
(a) the manner in which Export Credit Guarantee Corporation of India helping and
stimulating export credit among MSME exporters;
(b) whether it is true that under the above scheme MSMEs will get collateral-free
cover for export credit;
(c) if so, the details thereof;
(d) the number of collateral-free export credit facilitated under this scheme so far;
and
(e) whether any modifications sought by exporters from MSME sector and if so, the
details thereof?
ANSWER
वाणिज्य एवं उद्योग मंत्रालय में राज्यमंत्री (श्री णिणिन प्रसाद)
THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY
(SHRI JITIN PRASADA)
(a) In order to extend cost-effective insurance, particularly to Micro, Small and
Medium Enterprise (MSME) exporters, and to stimulate export credit, the Export Credit
Guarantee Corporation of India Ltd. (ECGC) has undertaken several initiatives in the
recent past. The details are as follows:
i. ECGC has enhanced the insurance cover for banks under the Short Term
Whole Turnover Export Credit Insurance for Banks (WT-ECIB) scheme up to
90% from the earlier average cover of 70% for small exporter accounts with
aggregate export credit working capital limits up to ₹20 crore, ₹50 crore and
₹80 crore. This enables banks to extend export credit at lower interest rates
applicable to highly rated accounts, thereby facilitating availability of adequate
and cost-effective export credit to MSMEs.
ii. Further, the enhanced cover of 90% has been extended for export credit loans
up to ₹50 crore under WT-ECIB without any additional premium, as against the
earlier ceiling of ₹20 crore, reducing the insurance cost for MSME exporters.
iii. ECGC has also provided 90% insurance cover under WT-ECIB for collateral-
free working capital export credit limits up to ₹10 crore for Micro and Small
Enterprise (MSE) exporters who are unable to offer collateral security or third-
party guarantees. This facility is available across all sectors and commodities
1without any additional premium and enables banks to extend liberal export
credit to MSEs.
iv. To improve ease of doing business, ECGC has simplified the procedure for
settlement of claims under ST-ECIB involving net principal outstanding up to
₹10 crore, with reduced documentation requirements and faster turnaround
time.
v. In addition, ECGC has enhanced insurance cover up to 100% for exporters who
obtain policies directly from the Corporation. Such policies also serve as
collateral for banks while extending export credit, particularly benefiting MSME
exporters who generally avail policies directly from ECGC, thereby reducing
collateral requirements for export credit.
(b) & (c) ECGC provides 90% insurance cover under WT-ECIB for collateral-free
working capital export credit limits up to ₹10 crore for Micro and Small Enterprise
(MSE) exporters who are unable to offer collateral security or third-party guarantees.
This facility is available across all sectors and commodities without any additional
premium and enables banks to extend liberal export credit to MSEs.
(d) A total number of 4987 export-accounts with limits up to ₹10 crore have been
facilitated under the scheme till 22.01.2026.
(e) ECGC has intimated that no such request has been received by them from the
MSME sector so far.
*****
2