MSME Export Support Schemes: Collateral-Free Loans and TAP
Why in the news
New support for small exporters is being drafted, covering loans without collateral and help with non-tariff compliance costs.
Key facts
- Collateral may be fully or partly waived; up to 1 lakh exporters covered, benefits capped per exporter.
- Non-tariff hurdles: EU carbon border tax and deforestation rules, US turtle exclusion device rules.
- Cross-border factoring promoted as another financing route.
- Inter-ministerial panel: Commerce, Finance and MSME.
- The Interest Equalisation Scheme lapsed; new, better-targeted credit support is proposed.
- Exim Bank’s Trade Assistance Programme (TAP) to widen, with a risk-sharing fund because banks lack risk data on risky markets.
Exam angle
- Umbrella: Export Promotion Mission, ₹2,250 crore.
- TAP belongs to Exim Bank.