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Big Boost for MSME Exporters: Interest Rebate and Loan Guarantee Schemes Rolled Out
The government has launched two new incentive schemes for MSME exporters. The first scheme will provide a loan interest rebate of up to 2.75% for exports of specific items. The second scheme will guarantee loans up to ₹10 crore for MSME exporters, reducing manufacturing costs and increasing global competitiveness. The aim is to boost employment and exports.
MSME-exporters can take advantage of two schemes under the Export Promotion Mission (EPM). The two export incentive programs would be handled under the observation of the Ministry of Commerce and Industry, the Ministry of MSME, and Ministry of Finance.
According to information released by the Department of Commerce on Friday, under the first scheme, MSME exporters will receive a loan interest rebate of up to 2.75%. However, this rebate will only apply to exports of government-issued items. According to the Department of Commerce, a list of these items will be released in due course. This scheme is currently being launched on a pilot basis.
The MSME exporters of defense products will benefit through the above-mentioned scheme too. The policy states that the interest rebates on the pre-shipment as well as the post-shipment loans will be paid to the MSME exporters only. The purpose behind the above initiative is to make the manufactured product cost-effective as compared to other countries’ products and be able to compete with other countries in the international market. The second scheme stated above provides a guarantee by the government for the loans taken by the MSME exporters.
