Lok Sabha Question No. 564 (UNSTARRED), answered on 2026-02-03
Subject: Export Credit Guarantee Corporation of India
Ministry: COMMERCE AND INDUSTRY
Asked by: Shri Balashowry Vallabhaneni

## 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 collateralfree  working  capital  export  credit  limits  up  to  ₹10  crore  for  Micro  and  Small Enterprise (MSE) exporters who are unable to offer collateral security or thirdparty guarantees. This facility is available across all sectors and commodities

without  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.

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