Last Updated: October 27, 2026 by Pratham Agarwal, Rasp International
The short answer
Interest subvention for exporters cuts the interest on rupee packing credit and post-shipment credit by 2.75 percent a year for Micro, Small and Medium Enterprise (MSME) exporters, up to Rs 50 lakh per Importer Exporter Code (IEC) each financial year, under Directorate General of Foreign Trade (DGFT) Trade Notice 20/2025-26 dated 2 January 2026. The goods must be on the notified Harmonised System (HS) list, and you need a Unique Identification Number (UIN) from the DGFT portal.
The rule that decides everything: generate the UIN on or before the day the bank disburses, and from financial year (FY) 2026-27 never later than 15 days after it, under Trade Notices 03/2026-27 and 13/2026-27. Later than that, the disbursal gets no subvention.
Verified as on 27 October 2026 against DGFT Trade Notice 20/2025-26 dated 2 January 2026, its amending Trade Notices 22/2025-26, 33/2025-26, 01/2026-27, 03/2026-27, 13/2026-27, 17/2026-27 and 29/2026-27, Trade Notice 32/2026-27 dated 26 October 2026 and the DGFT Export Promotion Mission (EPM) exporter and bank user manuals. Written by Pratham Agarwal, Founder, Rasp International.
2.75%
a year off the interest on rupee export credit, Trade Notice 20/2025-26 para 2(i)
Rs 50 lakh
cap per IEC per financial year, Trade Notice 20/2025-26 para 2(ii)
15 days
after the original disbursal to generate the UIN, Trade Notice 03/2026-27
167 lines
of Chapter 72 steel open to micro and small units only, Trade Notice 01/2026-27
| Scheme | Interest Subvention for Pre- and Post-Shipment Export Credit |
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| Part of | Niryat Protsahan, the trade finance arm of the Export Promotion Mission (EPM) |
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| Run by | DGFT (EPM Section), with the Export-Import Bank of India (Exim Bank) as implementing agency from 1 April 2026 (Trade Notice 17/2026-27) |
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| Legal basis | Trade Notice 20/2025-26 (draft Foreign Trade Policy (FTP) Section X and Handbook of Procedures (HBP) Chapter X), as amended |
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| Who it is for | MSME manufacturer and merchant exporters with an active IEC and Udyam registration |
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| What you get | 2.75 percent a year off rupee export credit interest, passed on by your bank |
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| Cap | Rs 50 lakh per IEC per financial year |
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| Validity or window | Pilot, no end date printed. UIN by disbursal or within 15 days of it, renewed each financial year |
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| Where you apply | DGFT portal, then your lending bank |
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Why this page exists
DGFT has put two common problems on record. Trade Notice 03/2026-27 dated 13 May 2026 says some exporters used an old UDIN from the Interest Equalisation Scheme (IES) on new credit, and others took the loan before finishing the UIN. The one-time fix accepted UINs generated up to 31 May 2026, for FY 2025-26 disbursals only (Trade Notices 03/2026-27 and 13/2026-27).
Rasp International is an ISO 9001:2015 certified export and import (EXIM) and DGFT advisory firm founded in 2019 that has served 500 plus exporters. This page sets out the rules in the order an exporter meets them.
What interest subvention for exporters is
Interest Subvention for Pre- and Post-Shipment Export Credit is an interest relief scheme that lowers the cost of rupee export loans by 2.75 percent a year (Trade Notice 20/2025-26) for MSME exporters, run by DGFT under the Niryat Protsahan arm of the Export Promotion Mission. Pre-shipment credit, or packing credit, funds materials and production before shipment. Post-shipment credit funds the export bill until the buyer pays.
Trade Notice 20/2025-26 runs the scheme as a pilot. Niryat Protsahan also holds Collateral Support, export factoring support, e-commerce exporter credit and support for emerging export opportunities, all under one Sub-Committee on Trade Finance (Trade Notice 29/2026-27). Support outside finance, such as TRACE certification reimbursement and Market Access Support for fairs, sits in Niryat Disha.
A UIN is a DGFT reference number that ties your intent to one bank, one facility type and one financial year. Trade Notice 33/2025-26 says it is the same number as the UDIN on DGFT documents, in the sample format EPMIESxxxxxxxxxxxx.
What you get
| Item | What the trade notices say | Source |
|---|
| Rate | 2.75 percent a year on the interest cost you actually bear; the bank still sets its own rate | Trade Notice 20/2025-26 para 2(i); Trade Notice 22/2025-26 |
| Credit covered | Rupee packing credit and post-shipment credit under the Reserve Bank of India (RBI) Consolidated Directions on Credit Facilities | Trade Notice 33/2025-26, draft HBP X.1(b) |
| Annual cap | Rs 50 lakh per IEC, all banks together | Trade Notice 20/2025-26 para 2(ii) |
| How it reaches you | Your bank passes it on upfront; you file no claim | Trade Notice 17/2026-27, Appendix-A 2(e) |
| Period and top-up | Only the days the credit is outstanding; on a renewal, only the top-up is fresh credit | Trade Notice 33/2025-26, Appendix-A 4(d) and para 4 |
| Not covered | Deemed exports, interest after the account turns a Non-Performing Asset (NPA) and credit disbursed before 2 January 2026 | Trade Notice 22/2025-26 X.3(f); Trade Notice 33/2025-26 |
Illustrative example: Rs 1 crore of packing credit repaid after 90 days earns about Rs 68,000 of subvention at the 2.75 percent rate in Trade Notice 20/2025-26 (Rs 1 crore x 2.75 percent x 90/365). The Rs 50 lakh cap bites only above about Rs 18 crore of average credit outstanding all year.
Who can apply and who cannot
Who can apply
- A micro, small or medium enterprise that is a manufacturer exporter or a merchant exporter, with an active IEC not on the Denied Entity List (DEL) and a valid Udyam Registration Number (draft HBP X.1(a), Trade Notice 20/2025-26).
- Exporting goods whose six-digit HS code is on Annexure-II of Trade Notice 20/2025-26, headed as 4,139 tariff lines.
- For Chapter 72 iron and steel, micro and small units only, on credit disbursed from 20 April 2026 (Trade Notice 01/2026-27).
- An exporter that outgrows its MSME category stays eligible for three years from re-classification (Trade Notice 22/2025-26, draft HBP X.3(h)).
Who cannot apply
- Exporters that are not MSMEs (Trade Notice 20/2025-26, Appendix-A 2(b)).
- Medium enterprises on the Chapter 72 lines in Annexure-II A (Trade Notice 01/2026-27 para 1).
- Goods off the list. On our reading, Annexure-II has no line from Chapters 1, 2, 24, 26, 27, 31, 47 or 72, such as meat, tobacco, ores, mineral fuels and basic steel.
- Deemed exports under Chapter 7 of FTP 2023 (Trade Notice 22/2025-26, draft HBP X.3(f)).
- Exporters taking Production Linked Incentive (PLI) benefits, which declaration item 6 in Annexure-III rules out.
Documents that get it through
| Document | What the authority checks | The mismatch that brings a query or rejection |
|---|
| IEC profile (ANF-1) | IEC status, verified online at intent stage (Trade Notice 33/2025-26 para 5), with DEL status N (Exporter User Manual para 4) | IEC inactive or profile not updated, which the form asks you to declare |
| Udyam registration | MSME number and type, auto-filled from the IEC (Annexure-III) | Udyam not added to the IEC, or a medium unit applying on a Chapter 72 line |
| Bank account | Validated in the IEC, with the bank enabled for IES; the UIN links to it (Annexure-III notes 1 to 4) | The lending bank is missing from the form, or the UIN names a different bank |
| Item details | One sector per application, ITC(HS) code (India’s HS based code) and country of export (Annexure-III) | HS code not on the list on the day you apply, so no UIN issues (Trade Notice 33/2025-26 X.4(f)) |
| Declaration | No PLI benefit, no DEL links, subvention within Rs 50 lakh (Annexure-III items 1, 6 and 7) | Signed without checking, which makes the exporter liable for recovery (draft HBP X.1(e)) |
| UIN letter to the bank | The bank enters the UIN and sees your filed details (Trade Notice 33/2025-26, Appendix-A 5) | An old IES number, another bank’s UIN or last year’s UIN (Trade Notice 33/2025-26 X.4(d) and X.4(f); Trade Notice 13/2026-27 S.N. 5) |
How to apply, stage by stage
Before you apply
1
Check the six-digit HS code
Find it on Annexure-II, or Annexure-II A for Chapter 72, as in force on the day you apply (Trade Notice 33/2025-26).
2
Fix the IEC profile and agree the facility
Add Udyam, validate the bank account and confirm the bank is enabled for IES. Packing credit and post-shipment credit each need their own UIN.
Filing the intent on the DGFT portal
3
Start the application
Open Services, Export Promotion Mission (EPM), Apply for EPM Schemes, Start Fresh Application, then choose Interest Subvention for Pre- and Post-Shipment Export Credit (Annexure-III).
4
Fill, sign and pay
Enter turnover, bank, loan and item details, e-sign with a Digital Signature Certificate (DSC) or Aadhaar and pay the Rs 200 fee set in the Exporter User Manual. The UIN appears in the acknowledgement letter.
After filing
5
Give the UIN to the bank
Hand it over on or before disbursal (Trade Notice 33/2025-26 X.4(d)). Subvention runs from the disbursal date (Trade Notice 13/2026-27 S.N. 5).
6
The bank claims each month
The bank files IEC-wise claims within 15 days of each month end, and Exim Bank checks them (Trade Notice 22/2025-26; Trade Notice 17/2026-27).
7
Get a new UIN for each financial year
Credit still outstanding after 31 March needs a UIN for the new financial year (Trade Notice 13/2026-27 S.N. 5(b)).
The lapse rule
From FY 2026-27, a UIN generated more than 15 days after the original disbursal does not count for that disbursal (Trade Notice 13/2026-27 S.N. 2). The FY 2025-26 relaxation closed with UINs generated by 31 May 2026 (Trade Notice 03/2026-27; Trade Notice 13/2026-27 S.N. 2). Subvention above Rs 50 lakh should be surrendered within the same financial year (Trade Notice 20/2025-26) and is recoverable (Trade Notice 33/2025-26, draft HBP X.4(e)).
Loan sanctioned, UIN not done yet
Send us your IEC, Udyam status, HS codes and disbursal date. We check eligibility and the 15 day window, and can file the intent in your unit’s name.
Where claims go wrong
These patterns come from the trade notice conditions, not named client cases.
| Failure | What you see | What actually broke |
|---|
| UIN made 20 days after disbursal | Full interest charged | Trade Notice 13/2026-27 S.N. 2 allows 15 days from the original disbursal |
| Old IES number given to the bank | The bank cannot map the claim | Trade Notice 33/2025-26 X.4(f) bars old IES UINs |
| One UIN for packing credit and the bill | Post-shipment interest not reduced | Trade Notice 13/2026-27 S.N. 4 needs a UIN per facility |
| New bank, old UIN | No subvention from the new bank | Trade Notice 33/2025-26 X.4(d): a UIN is not portable |
| Packing credit running past 31 March | Subvention stops from 1 April | Trade Notice 13/2026-27 S.N. 5(b) needs a new year UIN |
| Two banks, total above Rs 50 lakh | Recovery from the exporter | Trade Notice 22/2025-26 X.4(e) puts the cap on the exporter alone |
| Same invoice factored and bank financed | Recovery with interest | Trade Notice 32/2026-27 Annexure-I Part V bars a double claim |
How it fits with other schemes
| Scheme | What it covers | How it sits with interest subvention |
|---|
| Interest Equalisation Scheme (IES) | The old rate cut: 3 percent for MSME manufacturers only from 1 July 2024 (Trade Notice 08/2024-25), last extended to 31 December 2024 (Trade Notice 18/2024-25) | Replaced in practice; merchant exporters now qualify and old UINs do not carry over. See our Interest Equalisation Scheme status page |
| Support for Alternative Trade Instruments | 2.75 percent on export factoring interest (Trade Notice 25/2025-26) | Both can run together with separate ceilings, but never on the same invoice (Trade Notice 32/2026-27 Annexure-I Part V) |
| Collateral Support for Export Credit | Credit cover of up to 85 percent for micro and small and 65 percent for medium units, run through the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) (Trade Notice 21/2025-26) | A separate DGFT application. The notices do not say if both fit one loan, so check with the lending bank |
| Credit Assistance for E-Commerce Exporters | Its own 2.75 percent subvention, capped at Rs 15 lakh a year (Trade Notice 31/2025-26) | A separate facility; its declaration bars support for the same activity under another scheme (Trade Notice 31/2025-26, Annexure-IV item 6). See our e-commerce exporter credit page |
| RoDTEP and Duty Drawback | Duties and taxes on the shipment itself | Not named in these notices, though the Annexure-III declaration asks for the incentive schemes you use. See our export incentives page |
The full notice history is in our Export Promotion Mission guide.
What interest subvention will not do
1
It will not get you a loan
The bank still decides whether to lend (Trade Notice 20/2025-26, Appendix-A 4(a)) and at what rate (Trade Notice 22/2025-26, Appendix-A 3(a)).
2
It will not reach back
No subvention on credit disbursed before 2 January 2026, on a tariff line before it joins the list (Trade Notice 33/2025-26 para 2 and X.1(f)) or after a missed 15 day window.
3
It will not track your cap for you
Trade Notice 22/2025-26 puts the Rs 50 lakh ceiling across banks on the exporter alone.
How Rasp International handles interest subvention
When a client engages us, we prepare and file the intent end to end, always in the client unit’s own name, or guide clients who prefer to file themselves. We sign a non-disclosure agreement (NDA) and a service level agreement (SLA) with every client. Both sides hold the portal logins, kept safe and confidential, and documents stay in encrypted storage. We give an authority letter only when a client asks for one. We hold no customs broker (CHA) licence; licensed CHA partners across India handle customs clearance. Read how we work, or first check your IEC registration.
Borrowing from more than one bank this year
Send us your banks and facility types. We prepare and file the intent for each UIN in your unit’s name, or guide you if you file it yourself.
What Is Not Yet Notified, Checked on 27 October 2026
- A rate revision. Trade Notice 20/2025-26 (draft HBP X.3(b)) prefers a review in the last week of March and September, but no revised rate is notified. Check with the lending bank.
- Which date fixes the rate. Trade Notice 22/2025-26 points to sanction and Trade Notice 33/2025-26 to disbursal. Check with the lending bank.
- How long a UIN lasts. Trade Notices 20/2025-26 (draft HBP X.4(b)) and 13/2026-27 (S.N. 5) say to the financial year end, while the DGFT Exporter User Manual says one year. Work to 31 March and check with the EPM Section of DGFT.
- Whether the 15 days are calendar days. Count them that way and check with the lending bank.
- Whether the Rs 15 lakh e-commerce subvention counts against the Rs 50 lakh cap. Check with Exim Bank.
- Supplies to Special Economic Zone (SEZ) units and service exports. Check with the EPM Section of DGFT.
Frequently asked questions
What is interest subvention for exporters?
It is a 2.75 percent a year cut in the interest an MSME exporter pays on rupee packing credit and post-shipment credit, launched by DGFT under the Export Promotion Mission through Trade Notice 20/2025-26 dated 2 January 2026. The bank applies it upfront and claims it back from Exim Bank.
What is the interest subvention rate for exporters?
The rate is 2.75 percent a year for micro, small and medium enterprises alike, under Trade Notice 20/2025-26 para 2(i). It applies to the interest you actually bear, while your bank still sets its own lending rate. No revision has been notified so far.
Who is eligible for interest subvention on export credit?
MSME manufacturer and merchant exporters with an active IEC that is not on the Denied Entity List and a valid Udyam number, under draft HBP X.1(a) of Trade Notice 20/2025-26. The goods must be on the notified HS list. Deemed exports and exporters taking PLI benefits fall outside.
How do I generate a UIN for interest subvention on the DGFT portal?
Log in to dgft.gov.in and open Services, Export Promotion Mission (EPM), Apply for EPM Schemes and Start Fresh Application. Choose Interest Subvention for Pre- and Post-Shipment Export Credit, fill the form, e-sign and pay the Rs 200 fee in the DGFT Exporter User Manual. The UIN appears in the acknowledgement letter.
Can I generate the UIN after the bank disburses the loan?
Yes, but only within 15 days of the original disbursal, for FY 2026-27 onwards, under Trade Notice 03/2026-27 and Trade Notice 13/2026-27 S.N. 2. The subvention then runs from the disbursal date. A later UIN does not count for that disbursal, and the FY 2025-26 relaxation closed on 31 May 2026.
Do I need a separate UIN for packing credit and post-shipment credit?
Yes. Trade Notice 13/2026-27 S.N. 4 says one UIN cannot be used for both. You also need a separate UIN for each lending bank under draft HBP X.4(c), and a fresh UIN each financial year for credit still outstanding after 31 March (Trade Notice 13/2026-27 S.N. 5).
Is steel eligible for interest subvention?
Partly. Chapter 72 iron and steel was not on the main list. Trade Notice 01/2026-27 dated 20 April 2026 added 167 Chapter 72 lines for micro and small enterprises only, on credit disbursed from that date. Medium units are excluded on those lines. Chapter 73 steel articles already had lines on the list.
What happens if I borrow from two banks?
You need one UIN per bank, and the Rs 50 lakh ceiling covers both banks together. Trade Notice 22/2025-26 makes the exporter alone responsible for staying within it. Banks may ask for an undertaking under Trade Notice 33/2025-26, and any excess is recoverable from the exporter.
Can a merchant exporter get interest subvention?
Yes. Draft HBP X.1(a) of Trade Notice 20/2025-26 covers MSME merchant exporters as well as manufacturers, with an active IEC, a valid Udyam number and goods on the notified HS list. The old IES covered only manufacturers in its last phase, under Trade Notice 08/2024-25.
Is the old Interest Equalisation Scheme still available?
No. Trade Notice 18/2024-25 dated 30 September 2024 extended the old scheme only to 31 December 2024. The live support is EPM interest subvention, and Trade Notice 33/2025-26 says a UIN from the old scheme cannot pass on the new benefit, so generate a fresh EPM UIN.
Can I take interest subvention and export factoring support together?
Yes. Trade Notice 32/2026-27 dated 26 October 2026 lets an MSME exporter use both, with separate annual ceilings. One invoice or receivable cannot be claimed under both. A duplicate claim makes the exporter liable to full recovery with interest and to penal action under the Foreign Trade (Development and Regulation) Act.
Who reimburses the bank for interest subvention now?
Exim Bank, since 1 April 2026, under Trade Notice 17/2026-27 dated 7 August 2026. It checks each IEC-wise claim against the Rs 50 lakh ceiling and sends consolidated claims to DGFT. RBI ran the pilot and still processes supplementary claims for January to March 2026.
Sources
- Tier 1. DGFT Trade Notice 20/2025-26 dated 2 January 2026, guidelines: content.dgft.gov.in.
- Tier 1. DGFT Trade Notice 22/2025-26 dated 16 January 2026: content.dgft.gov.in.
- Tier 1. DGFT Trade Notice 33/2025-26 dated 20 March 2026: content.dgft.gov.in.
- Tier 1. DGFT Trade Notice 01/2026-27 dated 20 April 2026, Chapter 72 lines: content.dgft.gov.in.
- Tier 1. DGFT Trade Notice 03/2026-27 dated 13 May 2026: content.dgft.gov.in.
- Tier 1. DGFT Trade Notice 13/2026-27 dated 14 July 2026: content.dgft.gov.in.
- Tier 1. DGFT Trade Notice 17/2026-27 dated 7 August 2026, move to Exim Bank: content.dgft.gov.in.
- Tier 1. DGFT Trade Notice 29/2026-27 dated 1 October 2026, Sub-Committee: content.dgft.gov.in.
- Tier 1. DGFT Trade Notice 32/2026-27 dated 26 October 2026, factoring and interest subvention together: content.dgft.gov.in.
- Tier 1. DGFT Trade Notices 21/2025-26, 25/2025-26 and 31/2025-26, plus IES Trade Notices 08/2024-25 and 18/2024-25: DGFT trade notices. EPM user manuals for exporters and banks: DGFT portal.
This is general guidance. Rules change. Check the current notification or trade notice, or speak to us, before you act.
Related: Interest Equalisation Scheme status | Export incentives in India | Trade finance and ECGC | E-commerce exporter credit