In order to increase outbound shipments, the Reserve Bank of India (RBI) has extended the interest equalization plan for pre and post-shipment rupee loans for MSME exporters till March 2024. The RBI also released modified norms for the Interest Equalization Scheme for Export Credit on March 8, 2022. In this article information on the Interest Equalization Scheme for MSME, Interest Subsidy Scheme extension by RBI, Eligibility Criteria, Changes in the Interest Equalization Scheme, and information on IES Identification Number is mentioned.
The interest equalization programme mostly applies to industries that employ lots of people and create jobs. Below are the criteria for availing the benefits of IES.
The Interest Equalization Scheme for Pre and Post Shipment Rupee Export Credit Scheme has been extended by the government until March 31, 2024, or until further review, whichever comes first, according to a notification from the RBI dated March 8, 2022, which was sent to banks.
With effect from January 10,2021, and it expires on March 31, 2024. For MSME manufacturer exporters exporting on any HS (Harmonized system) lines, the revised interest equalization rates under the Scheme will now be 3%, and for exporters shipping under 410 HS lines, they will be 2%.
The scheme was initially extended by the RBI until June 2021 and then again until September 2021 in April 2021. For a set group of MSME manufacturer exporters, it changed the interest equalization rates under the plan to 2 and 3 percent.
The “Interest Equalization Scheme for Pre and Post Shipment Rupee Export Credit” has now been extended by the government till March 31,2024, or until further review, whichever comes first. It started from October 1,2021, and it will last until March 31, 2024.
The subvention rate was first set at 3 percent when the programme was first introduced, and as of November 2, 2018, it has been raised to 5 percent for MSME sectors. Large manufacturers and merchant exporters continue to pay a rate of 3%.
For MSME manufacturer exporters exporting under any HS lines, the revised interest equalization rates under the plan are now 3%, 2% for exporting under any HS lines, and 2% for manufacturer exporters and merchant exporters shipping under 410 HS lines.
The extension of the Interest Equalization Scheme for Pre and Post-Shipment Export Credit is one such crucial advantage for exporters. This programme was put into place in 2015 and ran for five years. It is extended further till March 31,2024 as a trade facilitation measure by the Directorate General of Foreign Trade (DGFT).
