About the Scheme
A government scheme to provide interest rate subvention on pre and post-shipment Rupee export credit to eligible exporters, thereby making Indian exports more competitive in the global market.
Target Beneficiaries: 5 lakh MSME manufacturer exporters across agriculture, textiles, leather, handicrafts, and machinery sectors receiving 3% interest equalisation (up to ₹50 lakh annually) on pre/post shipment export credit
Implementing Agency: Directorate General of Foreign Trade (DGFT) in consultation with Reserve Bank of India (RBI) and commercial banks.
Key Features
- Provides interest equalisation at a specified rate (e.g., 2% or 3%) on export credit.
- Applicable for both pre-shipment and post-shipment Rupee export credit.
- Covers eligible products/sectors and all manufacturer exporters/merchant exporters as per scheme guidelines.
- Implemented through commercial banks, which pass on the benefit directly to exporters.
- The scheme is periodically reviewed, extended, and notified by DGFT and administered by RBI.
Eligibility Criteria
- All manufacturer exporters and merchant exporters of specified 410 HS lines.
- All MSME manufacturer exporters across all HS lines.
- Must avail pre-shipment and/or post-shipment Rupee export credit from scheduled commercial banks.
- Holding a valid Import-Export Code (IEC).