Interest Subvention on Export Credit in India (EPM – Niryat Protsahan)
List of Services
AFLEO Consultants DGFT Regional office
- IEC and its modification/Yearly Update/IEC Surrender.
- Revoke IEC from DEL, Suspension, Cancellation etc / Merger/Demerger of IEC’s.
- DGFT Identity card.
- Advance License - Issuance and Redemptions
- Export Promotion Capital Goods (EPCG) License – Issuance and Redemptions
- Duty-Free Import Authorization (DFIA)
- Remission of Duties or Taxes on Export Product (RoDTEP)
- Merchandise Exports from India Scheme (MEIS)
- Services Exports from India Scheme (SEIS)
- Rebate of State and Central Taxes and Levies (RoSCTL)
- Transport and Marketing Assistance (TMA)
- Certificates of Origin (COO) – SAPTA, APTA, ISLFTA, GSTP, India–Dubai CEPA, etc.
- Import Monitoring System (IMS) – Steel IMS, Coal IMS, Copper/Aluminium IMS, Chip IMS
- Deemed Export Benefits – Apply for Refund of TED/DBK/Brand rate Fixation.
- Star Export House Certificate.
- Free Sale & Commerce Certificate, End User Certificate.
- Enforcement cum Adjudication Proceedings at RA Mumbai.
- E-RCMC Certificate from DGFT – APEDA, FIEO, EEPC, PHARMEXCIL, CHEMEXCIL ETC.
- Gems & Jewelry Schemes.
- Application for Interest Equalization Scheme.
- REX Registration.
- FREE SALE AND COMMERCE CERTIFICATE.
- Abeyance Cases for IEC’s in DEL.
- END USER CERTIFICATE.
DGFT HQ, New Delhi
- Norms Fixation - Handling 25+ Norms Fixation cases every month across various Product groups. (Engineering, Pharmaceutical, Chemical, Textiles & Leather, Plastic & Rubber, Food, Sports & Misc. products)
- Policy Relaxation Committee (PRC Matters) - Proudly representing 20+ cases every month.
- EPCG Committee Approvals - Handling 10+ complex cases every month
- Permission for Restricted/Negative list of Import Items & Export Items - Experience in Handling 100+ cases till date.
- Registration Certificates for Export & Import Items.
- SCOMET Licenses.
- TRQ (Tariff Rate Quotas)
- Appeal Matters under FTP.
Custom Related Services
- AA/EPCG/DFIA License Registration.
- Bond & Bank Guarantee (BG) Cancellation of EPCG/Advance License.
- ICEGATE Registration.
- Refund under Section 74.
- Pending Duty Drawback from Customs.
- Factory stuffing– Self-sealing permission. [FSP]
- Pending IGST Refund from Customs.
- Removal of IEC from the Alert list of Customs.
- GST Services – Refund of ITC from GST.
- Authorized Economic Operator (AEO T1, T2 & T3) certification.
- Reply & Follow-up of Customs Notices if any.
- GST Services – Refund of GST for Service Exporters.
- AD Code/IFSC Registration.
- SIIB Matters (Special Investigation and Intelligence Branch)
- SVB Matters.
- Registration Procedures for First-time Importers/ Exporters
- DPD/DPE Registration.
Other Certification:
- All Types of Digital Signature Certificates.
- Health Certificate for Export Products
- EPR Certification for Producers, Importers and Brand owners.
- Phytosanitory Certificate.
- BIS Certification.
- Banking & RBI related liaison for Exporters & Importers.
AFLEO logistics
- Sea Cargo Consolidation – Import & Export
- Sea Freight Forwarding - Import & Export
- Air freight - Import & Export
- Land freight
- Warehousing
- Customs clearance
- Insurance
AFLEO Global
- Buying of scrips - MEIS / SEIS / RoDTEP / RoSCTL / DFIA
- Selling of scrips - MEIS / SEIS / RoDTEP / RoSCTL / DFIA
Find our brochure for more details:
Export financing is one of the biggest cost components for exporters. The Interest Subvention Scheme (earlier Interest Equalization Scheme) helps reduce this burden by offering a 2.75% interest subsidy on export credit.
At Afleo, we help exporters not only understand this scheme but actually claim and maximize the benefit without compliance risks.
What is the Interest Subvention Scheme?
The Interest Subvention Scheme is a Government of India initiative under EPM – Niryat Protsahan, designed to make export credit more affordable for MSMEs.
It allows exporters to borrow at a reduced interest rate, thereby:
- Lowering financial costs
- Improving working capital efficiency
- Increasing global competitiveness
Unlike many schemes, this is a direct financial benefit, not a reimbursement.
Actual Benefit – How Much Can You Save?
The scheme provides a 2.75% reduction in interest rate on eligible export loans.
- Loan Amount = ₹5 Crore
- Interest Rate = 10%
- Effective Rate after Subvention = 25%
- Annual Savings = ₹13–14 Lakhs
If your export turnover is high, your total benefit can go up to ₹50 Lakhs per year per IEC.
This is not a subsidy you claim later — the benefit is applied directly by your bank, improving your cash flow instantly.
Similar Credit Assistance support is available for e-commerce exporters
Latest Update
DGFT Trade Notice No. 03/2026-27 dated 13 May 2026.UIN relaxation provided for export credit disbursed on/after 02.01.2026.Interest subvention allowed even if UIN generated after disbursal, subject to UIN generation by 31.05.2026.Benefit admissible from actual loan disbursal date.From FY 2026-27 onwards, UIN must be generated within 15 days of disbursal.Fresh UIN required on change of lending bank; UIN portability not allowed.Banks directed for immediate implementation. For more Information check this Trade Notice
Eligibility Criteria
To avail the benefit, exporters must meet the following conditions:
- Must have a valid IEC (Importer Exporter Code)
- Must be registered as an MSME (Udyam Certificate mandatory)
- Must obtain export credit from RBI-regulated banks or financial institutions
- Exported goods must fall under notified HSN tariff lines
- Loan must be specifically for export purposes (pre or post shipment)
Even if your business grows beyond MSME limits, you may remain eligible for up to 3 years after reclassification.
Documents Required
To ensure smooth processing, exporters should keep the following documents ready:
- IEC Certificate
- Udyam Registration Certificate
- Export orders / invoices
- Bank loan sanction letter
- Shipping documents (if applicable)
- UIN (Unique Identification Number from DGFT portal)
Step-by-Step Process to Claim Benefit
Step 1: Generate UIN (Mandatory)
Exporters must generate a Unique Identification Number (UIN) from the DGFT portal before loan disbursal.
Step 2: Apply for Export Credit
Approach your bank for pre-shipment or post-shipment export finance.
Step 3: Submit UIN to Bank
Provide UIN to the bank at the time of loan processing.
Step 4: Reduced Interest Applied
Bank automatically reduces your interest rate by 2.75%.
Step 5: Bank Claims from RBI
The bank claims the subsidy directly from RBI — no action required from exporter.
Important: If UIN is not generated before disbursal, you lose the benefit completely.
Key Conditions & Compliance Rules
Exporters must strictly follow these rules:
Cut-off Rule
- Applicable only for loans disbursed on or after 02 January 2026
UIN Requirement
- Mandatory before loan disbursal
- No UIN = No benefit
Benefit Cap
- Maximum ₹50 Lakhs per financial year per IEC
Multiple Bank Loans
- Allowed, but total benefit must remain within ₹50 lakh cap
NPA Restriction
- Benefit stops once account becomes Non-Performing Asset (NPA)
Tariff Line Condition
- Only applicable for notified HSN codes
- No retrospective benefits for newly added codes
When You Will NOT Get the Benefit
Understanding exclusions is crucial to avoid loss:
- Loan disbursed before 02 January 2026
- UIN not generated before loan disbursal
- Loan account classified as NPA
- Export product not in eligible HSN list
- Annual benefit exceeds ₹50 lakh cap
Why This Scheme is Critical for Exporters
- Reduces cost of capital significantly
- Improves pricing competitiveness in global markets
- Enhances working capital availability
- Directly increases profitability
lack of awareness or incorrect compliance.
How Afleo Helps You Maximize Benefits
At Afleo, we ensure you don’t just know about the scheme — you fully utilize it:
Eligibility Assessment
We check your eligibility based on MSME status, HSN codes, and export profile.
UIN Generation Support
We handle the complete UIN process to ensure zero rejection risk.
Bank Coordination
We work with your bank to ensure correct implementation of reduced interest.
Compliance Management
We ensure all documentation and conditions are properly met.
With Afleo, you avoid common mistakes that lead to loss of benefits or delays.
FAQ’s
1. Who is eligible for interest subvention?
MSME exporters (both manufacturers and merchants) with valid IEC and Udyam registration.
2. Do I need to apply separately for subsidy?
No. The bank automatically applies the reduced interest rate.
3. Is UIN mandatory?
Yes. Without UIN generated before disbursal, you cannot claim the benefit.
4. Can I claim benefit from multiple banks?
Yes, but the total benefit cannot exceed ₹50 lakh per year.
5. Is the scheme applicable to all export products?
No, only to notified HSN tariff lines.
6. What happens if my account becomes NPA?
The benefit will stop from the date the account is classified as NPA.
Don’t Miss Benefits
Exporters often lose significant savings due to minor compliance errors.
Let Afleo help you reduce your interest cost, improve cash flow, and maximize government benefits.