CHEAPER EXPORT FINANCE

Interest Equalisation Scheme (IES) on Export Credit

Reduce your Packing Credit (PC) and Post-Shipment (PCFC) interest burden. We help MSMEs and Manufacturer Exporters claim up to 3% interest subsidy directly from banks.

Benefit Calculator

How much interest can you save?

What is the Interest Equalisation Scheme?

The Interest Equalisation Scheme (IES) allows eligible exporters to avail of Pre-shipment and Post-shipment export credit at a lower interest rate. The government reimburses the banks the difference (equalisation amount), and the banks pass this benefit to the exporter by charging a reduced rate.

Example: If the bank's standard rate is 9% and you are eligible for a 3% subsidy, the bank will charge you only 6%. This scheme is crucial for making Indian exports competitive by lowering the cost of capital.

Scheme Details

Who is Eligible?

Current rates as per RBI/DGFT notifications.

MSME Manufacturers

Highest Priority
3% Subsidy

Available for All Products exported by MSME manufacturers who have a valid Udyam Registration.

Requirement: Valid Udyam Certificate linked to the export product.

Other Manufacturers

Product Specific
2% Subsidy

Available only for 410 Specific Tariff Lines identified by DGFT. Merchant exporters are generally excluded unless specified.

Requirement: ITC HS Code must match the 410 eligible lines.
*Note: The benefit is capped at ₹ 10 Crores per IEC per annum (subject to policy changes).

Why Do Banks Reject Claims?

Even if you are eligible, simple documentation errors can lead to your bank denying the interest subvention. We audit your file to ensure zero rejections.

  • Udyam Mismatch

    NIC Code in Udyam does not match the product being exported.

  • HS Code Errors

    Exporting under a generic HS code not listed in the 410 eligible lines.

  • Late Submission

    Failure to submit auditor certificate or UIN to the bank on time.

Retrospective Claim

Did you miss claiming IES in the past? It may still be possible to claim retrospectively if the shipment falls within the eligible period and documents are in order.

How to Avail

Claim Process

1

Check

Verify if your product (HS Code) is in the eligible list.

2

Code

Ensure the correct Scheme Code is mentioned on the Shipping Bill.

3

Submit

Provide Udyam Certificate and Undertaking to your AD Bank.

Credit

Bank reduces the interest rate charged on your loan account.

Professional Services

IES Consultancy

Bank Liaison & Audit

Request Quote

Success Fee Based

  • Eligibility Analysis
  • Udyam Registration Correction
  • Bank Documentation Support
  • Retrospective Claim Recovery
  • DGFT Representation
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Why CloudDesk for Interest-Equalisation-scheme?

Banks won't give you the discount unless you give them the UIN. CloudDesk ensures your finance is 'Subvention-Ready' before you sign the loan.

1. The "UIN-First" Compliance

In 2026, you cannot walk into a bank and ask for a subvention. You must first file an "Intent to Avail" on the DGFT portal to generate a Unique Identification Number (UIN).CloudDesk handles this digital filing, ensuring your HSN codes match the "Positive List" (which covers ~75% of tariff lines).

2. The ₹50 Lakh Cap Sentinel

The subvention is now capped at ₹50 Lakh per IEC per financial year.CloudDesk’s Finance Tracker monitors your aggregate claims across multiple banks. We alert you when you are nearing the cap so you don't over-claim, which now triggers a mandatory "Voluntary Surrender" and potential penalties.

3. HSN Positive List Validation

Not all products qualify anymore. The 2026 scheme excludes Waste/Scrap, PLI-covered products, and Restricted items.We perform a Product-Subvention Audit to confirm your HSN is on the current "Positive List" before you commit to an export order.

4. Bank Liaison & Auditor Certification

Banks require a specific External Auditor Certification to claim the reimbursement from RBI. CloudDesk coordinates with your auditors and the bank’s trade finance desk to ensure the "Interest-Relief" is passed on upfront—so you pay less interest from Day 1, rather than waiting for a refund.

Frequently Asked Questions

What is the current interest subvention rate in 2026?

The base rate is 2.75% per annum for all eligible MSME (Micro, Small, and Medium) manufacturer exporters.

Are Merchant Exporters still eligible?

No. As of the 2026 revamp, the scheme is exclusively for MSME Manufacturers. Non-MSME and Merchant exporters have been moved out of the fresh claim cycle to focus resources on small-scale manufacturing.

Is there a limit on how much I can save?

Yes. The fiscal benefit is capped at ₹50 Lakh per exporting firm per financial year.

Do I need a new UIN for every loan?

You need a UIN to be shared with your bank. The UIN is generally valid for one year. If you deal with multiple banks, you must ensure the total subvention across all banks stays under the ₹50 Lakh cap.

What is the "Positive List"?

The government now maintains a list of HSN 6-digit codes that are eligible for the 2.75% subvention. If your product is not on this list (e.g., certain steel or chemical lines), you cannot claim the benefit.

What documents are needed for the DGFT UIN?

You need an Active IEC, Udyam Registration, and a valid Digital Signature (DSC). CloudDesk handles the portal navigation and document attachment (Export Orders, etc.).

Can I claim Interest Subvention if I am also in a PLI Scheme?

No. Products covered under any Production Linked Incentive (PLI) scheme are specifically excluded from interest subvention in 2026 to prevent "Incentive Overlap."

What happens if I over-claim?

If you exceed the ₹50 Lakh cap, you must voluntarily surrender the excess within the same financial year. Failure to do so renders you liable for the amount plus interest/penalties from the DGFT.