📊 Interest Equalization Scheme (IES) for Exporters
DGFT EXIM
The Interest Equalization Scheme (IES) is a financial assistance initiative by the Government of India designed to support exporters by offering an interest subsidy on pre-shipment and post-shipment export credit. This scheme aims to lower borrowing costs for exporters and boost the competitiveness of Indian goods and services in global markets.
🎯 Objective of the Scheme
Enhancing Export Competitiveness
By reducing the cost of credit, the scheme enables Indian exporters to offer competitive pricing in international markets.
Facilitating Export Credit Access
It ensures easier and more affordable access to export credit, particularly benefiting Micro, Small & Medium Enterprises (MSMEs) and labor-intensive sectors.
📌 Key Features
Interest Subvention
Exporters receive a specified interest rate subsidy on export credit availed from banks for both pre-shipment and post-shipment periods.
Various Sectors Coverage
Covers a wide range of sectors including manufacturing, agriculture, textiles, engineering goods, handicrafts, and other export-oriented industries.
Wide Eligibility
Open to both direct exporters (manufacturer and merchant exporters) and indirect exporters (vendors or suppliers to export houses or EOUs).
⚙️ Implementation Process
Role of Banks
Authorized banks implement the scheme by offering eligible exporters export credit at reduced interest rates as per government notifications.
Exporter's Application
Exporters must declare their eligibility for IES benefits while applying for export credit with their banks.
Claim Settlement
Banks claim reimbursement of the interest subvention from the designated government nodal agency based on disbursed export credit.
📑 Benefits of the Interest Equalization Scheme
- Reduced Borrowing Costs: Makes export credit more affordable for exporters by subsidizing part of the interest payable to banks.
- Enhanced Global Competitiveness: Enables Indian exporters to price their products more competitively in international markets.
- Improved Cash Flow: Lower interest payments free up working capital, which can be reinvested into business growth and expansion activities.
📞 How DGFT EXIM Consultants Can Help
At DGFT EXIM Consultants, we assist businesses in:
- ✅ Identifying eligibility for IES benefits
- ✅ Preparing and verifying export credit applications in coordination with banks
- ✅ Ensuring compliance with IES documentation and procedural guidelines
- ✅ Advising on maximizing benefits under export finance schemes
Whether you are a manufacturer exporter, merchant exporter, or service provider, our experts can simplify the process and help you leverage the benefits of the Interest Equalization Scheme efficiently.
Connect with DGFT EXIM today to streamline your export credit financing and reduce your interest burden through expert-managed IES benefits support.