The exporters’ complaints about the cost of debt are going to end. Now exporters will get loans at less than 8 percent of the interest rate. At the same time, the rate of this loan from banks outside the country will be less than 4 percent. Finance Minister Nirmala Sitharaman made the announcement in this regard on Saturday. Exporters have been demanding for the last several years the easy availability of credit and the reduction in the cost of loans, ie, interest rates. After the Finance Minister’s announcement, exporters’ debt will be given priority space. Agriculture has been placed in the primary sector of debt.
Financial arrangements to exporters will also be constantly monitored by the government
The Finance Minister said that the government will expand the scope of Export Credit Insurance Scheme through Export Credit Guarantee Corporation (ECGC) to provide loans to exporters at cheaper rates. This will help exporters to take loans at low-interest rates. According to the Finance Minister, the benefit of this scheme will mainly be given to the MSME sector. The MSME sector contributes over 40 percent of the exports of goods from India.
The Finance Minister Said That
Guidelines will be issued soon by the RBI to bring the export into the primary sector of bank loans. Under the primary sector, the export sector will be given additional loans ranging from Rs 36,000 crore to Rs 68,000 crore. Right now the exporters complain that the banks ask for many types of guarantees in giving loans to them and do not give loans easily. Financial arrangements to exporters will also be constantly monitored by the government. The Reserve Bank of India (RBI) will always publish data about this. A dashboard will be created through which one can get information about the financial system of the export sector. An inter-ministerial group will be formed in the Commerce Department which will continue to take stock of the financial system of the export sector.