The scheme approved by the Union Cabinet on November 12 provides 100% credit guarantee coverage by the National Credit Guarantee Trustee Company Ltd (NCGTC) to Member Lending Institutions (MLIs) for extending additional credit facilities up to ₹20,000 crore to eligible exporters, including MSMEs.
CGSE was made operational on December 1, 2025. It enables banks and financial institutions to extend additional financial assistance to Indian exporters during a period of certain headwinds, which shall diversify their markets and enhance their global competitiveness.
“Applications worth ₹8,764.81 crore (1,840 applications) received, out of which ₹3,361.83 crore (774 applications) sanctioned by the lenders” till January 2, 2026, Department of Financial Services (DFS) under the Finance Ministry said in a statement.
Implemented by the DFS, CGSE is valid till March 31, 2026 or until ₹20,000 crore of guarantees are issued, the statement said, while outlining the performance of DFS.
Also read: Credit Guarantee Scheme for Exporters to give loans up to ₹50 cr for tenure of 4 years
Talking about the Mutual Credit Guarantee Scheme for MSMEs (MCGS-MSME), it said, the scheme offers a credit guarantee to provide an incentive to MLIs to enable availability of additional credit facilities up to ₹100 crore to MSME borrowers for purchase of equipment/plant and machinery.
Further, it aims to give a boost to manufacturing by facilitating the availability of credit for the purchase of plant and machinery/equipment, it said.
As of December 2025, banks have sanctioned ₹16,836 crore against 8.96 lakh applications.
Sharing the performance of banks, it said, Scheduled Commercial Banks (SCBs) have recorded the highest ever aggregate net profit of ₹4.01 lakh crore.
Public Sector Banks (PSBs) have also recorded the highest ever aggregate net profit of ₹1.78 lakh crore during 2024-25. Further, the net profit of PSBs during the first half of 2025-26 was ₹0.94 lakh crore.
Global deposits and global advances of PSBs increased from ₹71.95 lakh crore and ₹56.16 lakh crore in March 2015 to ₹146.27 lakh crore and ₹114.85 lakh crore, respectively, in September 2025.
GNPA ratio of PSBs declined to 2.30% (₹2.65 lakh crore) in September 2025 (provisional data) from 4.97% (₹2.79 lakh crore) in March 2015, and from a peak of 14.58% (₹8.96 lakh crore) in March 2018.
Capital Adequacy Ratio of PSBs improved by 451 bps to reach 15.96% in September 2025 from 11.45% in March 2015.
