“It’s not about easy or hard — it’s about the chosen path. Every successful entrepreneur builds courage before comfort.”
When India’s MSME exporters struggle to get large-value loans for growth, the new proposed modification in MCGS for exporters steps in like a strong financial backbone. Launched in January 2025, this scheme is a game-changer — providing a 60% government-backed guarantee on export-related loans up to ₹100 crore.
If you are an MSME dreaming to scale beyond borders, this is one of the most powerful financial tools available today.
You may also like to read:How CGTMSE Loan Helped My Small Business Grow Without Collateral: A very important scheme for New Entrepreneurs.
To be honest, until recently, even as an exporter myself, I only knew about the pre-shipment and post-shipment export credit options that banks offer — loans that are often collateral-free but limited in scope.
I used to search online for new export finance options, thinking I already knew most of them. But I had never heard about this MCGS for exporters scheme for MSME exporters until now.
And that made me wonder — if I, as an active exporter, didn’t know about it, how many thousands of MSME exporters across India might also be unaware of such a powerful opportunity?
This realization is exactly why I decided to write this blog — to spread awareness among entrepreneurs who are busy building businesses but might be missing out on schemes that could change their growth story.
The Modified Credit Guarantee Scheme (MCGS) is a flagship initiative under the National Credit Guarantee Trustee Company Ltd. (NCGTC). It’s designed to help MSME exporters access larger credit facilities from banks without pledging heavy collateral.
Under this scheme:
In simple words, the government shares the bank’s lending risk, allowing MSME exporters to secure bigger, faster, and easier funding for their growth.
| Feature | Description |
|---|---|
| Launched by | Ministry of Finance (through NCGTC) |
| Launch Date | January 2025 |
| Coverage | 60% of the credit amount |
| Maximum Loan Size | ₹100 crore per borrower |
| Eligible Borrowers | MSME exporters with valid Udyam and IEC registration |
| Eligible Credit | Term loans, export credit, working capital, or post-shipment finance |
| Guarantee Duration | Up to 8 years |
| Fee | Nil in sanction year, 1.5% for next 3 years, then 1% annually |
| Scheme Tenure | 4 years or until ₹7 lakh crore guarantee limit reached |
| Parameter | MCGS (2025) | CGTMSE |
|---|---|---|
| Full Form | Modified Credit Guarantee Scheme | Credit Guarantee Fund Trust for Micro & Small Enterprises |
| Administered by | NCGTC | SIDBI and Ministry of MSME |
| Target Audience | MSME Exporters | Domestic MSMEs |
| Loan Coverage Limit | Up to ₹100 crore | Up to ₹5 crore |
| Guarantee Cover | 60% | 75%–85% |
| Focus Area | Export credit, technology upgrades, global expansion | Collateral-free startup and working capital loans |
| Purpose | Enable exporters to access high-value credit | Help small enterprises start and sustain growth |
| Beneficiary Type | Export-oriented MSMEs | Domestic manufacturing and service MSMEs |
| Managed By | Ministry of Finance | Ministry of MSME |
In short:
While CGTMSE empowers small businesses to start and expand domestically, MCGS is designed for exporters who are ready to scale globally. Together, they complete the MSME financing ecosystem — from starting up to stepping into international markets.
Entrepreneurship isn’t easy or hard — it’s a choice. And every chosen path begins tough, but becomes meaningful when you persist with conviction.
I’ve never hesitated to explore ideas, but I’ve learned something valuable here: sometimes, our growth is limited not by resources, but by awareness.
If I had known about MCGS earlier, I might have used it to scale faster. And that’s why I want every MSME exporter reading this to explore it — talk to your bank, check your eligibility, and make use of this scheme.
Schemes like MCGS don’t promise success — they promise opportunity. What you make of it is your entrepreneurial story.
Your product deserves the world — and the MCGS is your ticket to reach it.
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