The Government of India has launched a new intervention titled “Credit Assistance for E-Commerce Exporters” under the Export Promotion Mission (EPM) – NIRYAT PROTSAHAN to improve access to working capital for Micro, Small and Medium Enterprises (MSMEs) engaged in cross-border e-commerce exports. The initiative has been notified by the Directorate General of Foreign Trade (DGFT), Department of Commerce, Ministry of Commerce & Industry through Trade Notice No. 31/2025-26 dated 6th March 2026 issued from Vanijya Bhawan, New Delhi. The scheme has been implemented with prospective effect and aims to strengthen India’s participation in global digital trade value chains.
The intervention seeks to facilitate improved working capital availability for MSMEs engaged in international value chains through e-commerce platforms. By providing easier access to credit, the initiative aims to enable exporters to manufacture goods in advance of anticipated demand and scale their exports through digital marketplaces and international logistics channels. The scheme also seeks to accommodate the variable cash-flow cycles typical of e-commerce businesses by offering flexible financing options tailored to the operational realities of MSME exporters.
Under the intervention, credit guarantee cover will be provided to banks extending working capital assistance to eligible MSME exporters. The credit facilities may be provided in the form of Cash Credit, Overdraft or other working capital facilities through scheduled commercial banks and financial institutions. In addition to credit guarantee coverage, the scheme will also provide interest subvention support, subject to notified ceilings and conditions. These measures are intended to reduce the cost of borrowing and mitigate risks for lending institutions, thereby encouraging increased lending to e-commerce exporters.
The programme will initially be implemented on a pilot basis through the Export-Import Bank of India (Exim Bank), with operational support from the National Credit Guarantee Trustee Company (NCGTC). The pilot phase is expected to enable institutional learning, stakeholder feedback and data-driven refinements to the framework before full-scale implementation. Detailed provisions relating to the policy framework, operational procedures, governance structure and pilot implementation guidelines have been provided in annexures accompanying the Trade Notice.
Eligibility for assistance under the scheme is limited to MSMEs involved in international value chains through e-commerce that hold a valid Importer-Exporter Code (IEC) and a Udyam Registration Number, and are not listed in the Denied Entity List. MSMEs with at least one year of domestic e-commerce operations may also apply, provided they meet certain operational criteria such as a proven export track record through postal or courier routes or maintaining inventory in overseas warehouses or e-commerce export hubs.
The intervention provides two major financing instruments. The first is the Direct E-Commerce Credit Facility, which supports exporters engaged in direct cross-border shipments through postal or courier channels or through e-commerce export hubs. The second is the Overseas Inventory E-Commerce Credit Facility, which supports exporters maintaining inventory in overseas warehouses for fulfilment of international orders. These instruments aim to address the distinct financing needs of exporters operating through different e-commerce logistics models.
Under the scheme, the Direct E-Commerce Credit Facility will provide credit limits of up to ₹50 lakh, with guarantee cover of up to 90 percent for a maximum tenure of 365 days and an annual guarantee fee of 0.5 percent. The Overseas Inventory E-Commerce Credit Facility will provide credit limits of up to ₹5 crore, with guarantee cover of up to 75 percent for a similar tenure and an annual guarantee fee of 1 percent. Partner lending institutions will also offer an upfront interest subvention of 2.75 percent on eligible financing extended to MSME exporters under the scheme.
To ensure equitable distribution of benefits, the annual interest subvention support under the scheme will be capped at ₹15 lakh per beneficiary MSME in a financial year. The notified subvention rates and guarantee coverage levels will be subject to bi-annual review, preferably in the last week of March and September each year, and may be revised based on prevailing financial market conditions and programme performance.
The governance framework of the scheme provides for the establishment of a Sub-Committee on Trade Finance, comprising representatives from the Ministry of MSME, Department of Commerce, DGFT, Department of Financial Services, and other relevant financial institutions and industry bodies. The committee will advise on policy matters, recommend levels of interest subvention and guarantee coverage, monitor implementation challenges and support stakeholder outreach and capacity-building initiatives.
The operational process under the scheme requires exporters to first submit an online application through the DGFT portal indicating their intent to avail credit support. Upon submission, a Unique Identification Number (UIN) will be generated, which must be used when approaching eligible banks or financial institutions for credit assistance. Lending institutions will then evaluate the proposal, and applications for credit guarantee coverage will be processed by Exim Bank and NCGTC through a digital assessment framework.
The Government has also invited comments and suggestions from stakeholders on the scheme guidelines in accordance with Paragraph 1.07A of the Foreign Trade Policy (FTP) 2023. Stakeholders may submit their feedback within 30 days of the issuance of the Trade Notice via email to the DGFT.
The initiative is expected to significantly strengthen India’s cross-border e-commerce ecosystem by improving access to affordable credit for MSME exporters, enabling them to scale production, manage overseas inventory and expand their presence in international markets through digital commerce channels.
The Trade Notice can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/03/Guidelines-Credit-Assistance-for-E-Commerce-Exporters.pdf
