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Subsidy Commerce

Interest Equalisation Scheme — Export Credit

3% interest subvention on pre/post-shipment rupee export credit

Maximum benefit
3% interest subvention
Typical processing
Same as bank loan sanction — typically 15-30 days
Apply on official portal

About this scheme

Interest Equalisation Scheme provides interest subvention on pre and post-shipment rupee export credit for identified labour-intensive sectors and all MSME manufacturers. Reduces effective borrowing cost for exporters.

What you get

  • 3% interest subvention on pre-shipment rupee credit
  • 3% interest subvention on post-shipment rupee credit
  • Effective rate after subvention: 4-6% (vs market 8-12%)
  • Maximum benefit per IEC per FY notified periodically
  • Auto-applied by lender if MSME tag is on the IEC
  • No separate application — bank handles end-to-end

Who qualifies

MSME manufacturer-exporters across all sectors, plus larger exporters in 410 identified tariff lines (labour-intensive). Active IEC code holder with bank pre/post shipment credit.

Industries (NIC divisions)
Food processingBeveragesTextilesApparelLeatherPaperPrintingChemicalsPharmaPlastics / rubberNon-metallic mineralsBasic metalsFabricated metalsElectrical equipmentMachinery
Business types
ProprietorshipsPartnershipsPrivate LimitedLLPsOne Person Companies

Available across India (central scheme).

How to apply

  1. 1Have an active IEC code + Udyam registration
  2. 2Notify bank that you qualify as MSME exporter
  3. 3Bank applies the 3% reduction at sanction
  4. 4Quarterly subvention claim submitted by bank to RBI
  5. 5No action required from exporter once tagged

Key terms and conditions

  • 3% applied at sanction; quarterly reconciliation with RBI
  • MSME tag must be live on IEC throughout the loan tenure
  • Foreign currency credit excluded — rupee only

What disqualifies you

  • Non-exporters cannot claim
  • Defaulters to lender are tagged out
  • Specific gems & jewellery sectors carved out

Documents typically required

  • IEC code
  • GST registration
  • Export documents
  • Bank pre/post shipment credit account

The content above is compiled from public information published by the scheme authority. Eligibility, benefits, and procedures are subject to change. Confirm details directly with the official portal before applying. BharatSeal does not process scheme applications.