Lok Sabha Question No. 266 (UNSTARRED), answered on 2026-02-02
Subject: Credit Guarantee Scheme for Exporters (CGSE)
Ministry: FINANCE
Asked by: Shri Manickam Tagore B

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UN-STARRED QUESTION NO. 266

ANSWERED ON MONDAY, 2 nd  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 districtwise 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.

*****

Table1 - State wise applications sanctioned

| Name of the State   | No of Sanctioned Applications   | Amount sanctioned (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

| Industry                                              |   No of Sanctioned Applications | Amount sanctioned (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 | 26.83                             |

| Fruits 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

| Name of the Branch City   |   No of Sanctioned Applications |   Amount sanctioned (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 |                             55.6  |
| Tuticorin                 |                               6 |                             31.46 |
| Salem                     |                               2 |                              4.6  |
| Ranipet                   |                               4 |                             31.73 |
| Dindigul                  |                               1 |                              3.4  |
| Krishnagiri               |                               1 |                              3.4  |
| Rajapalayam               |                               2 |                             20.66 |
| Thiruchirapalli           |                               1 |                              0.2  |
| Ramanathapuram            |                               1 |                              2.78 |
| Avinashi                  |                               2 |                              2.24 |
| Bhiwani                   |                               1 |                              6.3  |
| Theni                     |                               3 |                             62    |
| Thanjavur                 |                               1 |                              0.25 |
| Dharmapuri                |                               1 |                              0.1  |
| Grand Total               |                             275 |                            971.87 |