Govt Boosts MSME Exports: New Schemes Offer Lower Interest, Collateral Support

• Commerce Ministry launched two new schemes on Jan 2 under the Export Promotion Mission to aid MSMEs.
• Interest Subvention Scheme offers loans at 2.75% lower rates, reducing costs and boosting competitiveness for 6 years (2025-2031).
• Collateral Support for Export Credit allows MSMEs to get bank loans with less collateral via CGTMSE.
• Schemes aim to help MSMEs, especially those impacted by US tariffs, and promote export diversification to new markets.
• These are part of the larger Export Promotion Mission, approved in December with a budget of 25,060 crore rupees.

Why It Matters: Government introduces two key schemes to empower MSMEs with cheaper credit and collateral support for exports.