Interest Equalisation Scheme on Pre and Post Shipment Rupee Export Credit (IES)

Central Sector export-credit support scheme (in force from 1 April 2015, extended several times) that lowers the cost of rupee export finance so Indian exporters stay price-competitive. Under the revised structure, the interest equalisation benefit is 3% per annum for MSME manufacturer exporters (across all HS lines) and 2% per annum for manufacturer and merchant exporters of 410 identified tariff lines (at 4-digit level). Following the RBI notification of 29 August 2024, only MSME manufacturer exporters are eligible for the 3% benefit; from 1 July 2024 the scheme continued for MSME manufacturers, with fiscal benefit capped at ₹50 lakh per MSME for FY 2024-25 (those who had already availed ₹50 lakh or more by 30 September 2024 were not eligible for further benefit). The scheme is implemented by the RBI through public and other banks and jointly monitored by DGFT and RBI; exporters generate a Unique IES Identification Number on the DGFT portal, and banks apply the reduced rate and claim reimbursement from the RBI against external-auditor certification.