Interest Subvention for MSME Exporters (DGFT – EPM Niryat Prothsahan): What Small Exporters Need to Know (Trade Notice No. 20/2025-26, dated 02 Jan 2026)

March 04, 2026

Overview

DGFT has launched “Interest Subvention for Pre- and Post-Shipment Export Credit” under the Export Promotion Mission (EPM) – Niryat Prothsahan through Trade Notice No. 20/2025-26 dated 02 January 2026, with immediate effect. The intervention is operationalised through the Reserve Bank of India (RBI) on a pilot basis and is intended to improve access to pre- and post-shipment rupee export credit for MSME exporters by reducing the cost of such credit and providing a rules-based and transparent interest-relief mechanism.

Who this scheme is for 

The Trade Notice specifies that the scheme applies to MSME exporters, including MSME manufacturer exporters and merchant exporters, subject to conditions in the guidelines and eligibility requirements.

To be eligible, the draft provisions state that MSME exporters must hold:

a valid active IEC (not suspended/cancelled and not in the Denied Entity List), and

a valid MSME Udyam Registration Number.

(Your bullet summary also highlights “Valid & active IEC and Udyam (MSME) Registration” as must-have requirements. )

Key benefits for MSME exporters 

DGFT lists the salient benefits for exporters in the Trade Notice:

1) Interest subvention rate: 2.75% per annum

The rate of interest subvention @ 2.75% per annum is available on Pre-Shipment Rupee Export Credit and Post-Shipment Rupee Export Credit for Micro, Small and Medium Enterprises.

2) Maximum benefit: ₹50 lakh per financial year (per MSME exporter)

An MSME exporter may receive a maximum subvention benefit of ₹50 lakh per financial year.

3) Banks pass the benefit upfront; reimbursement is via RBI 

The implementing framework states that the interest subvention is to be passed on upfront to the eligible MSME exporter by the lending institution, and the lender claims reimbursement from RBI as per operational procedures.

What credit is covered 

Support is limited to export credit extended by lending institutions in accordance with RBI’s Master Directions on Pre- and Post-Shipment Export Credit.

This is important for small exporters: even if you are MSME, your financing must qualify as export credit under the RBI framework to be covered under this component.

Product eligibility: coverage is restricted to a notified “positive list” 

Interest subvention support is available only for export credit availed for exports under a notified positive list of tariff lines defined at HSN six-digit level.

The Trade Notice also states that the positive list of eligible HSN six-digit tariff lines is enclosed at Annexure-II.

In Annexure-II, the list is described as a “Positive List of 4185 tariff lines at HS Six-digit Level.”
Check Products: https://share.google/Ozr4B9LlktXweVVXQ 

Also, the guidelines state the positive list will be reviewed periodically based on objective parameters and not linked to export performance or minimum export thresholds.

Objective and design (why this matters to small exporters)

The objective is to facilitate improved access to pre- and post-shipment rupee export credit for MSME exporters by reducing the cost of such credit and enhancing liquidity/working-capital efficiency.

The draft provisions explicitly state that support is limited to the cost of credit and not linked to export performance, pricing, quantities exported, or export-contingent conditions.

Step-by-step: how an MSME exporter applies 

The guidelines require an eligible MSME entity to file an online declaration of intent prior to applying for export credit; on submission, a Unique Identification Number (UIN) is generated.

UIN rules you must follow

The UIN is linked to the bank account specified in your IEC profile and is valid until the end of the relevant financial year.

Each UIN corresponds to one lending bank; if export credit is taken from multiple banks, separate UINs may be generated.

The entity furnishes the UIN to its bank, and the bank reports subvention claims mapped to that UIN.

Both the entity and bank must ensure claims remain within the annual ceiling; excess must be voluntarily surrendered within the same financial year, failing which recovery may apply.

Annexure-III also notes key form elements, including MSME details and bank details, and specifically states:

choose only validated banks, and

your bank account should be validated in your IEC profile.

Bank-side processing 

The scheme design requires banks to:

pass on the benefit upfront to eligible exporters, and

submit claims to RBI for reimbursement (as per the component framework).

Pilot roll-out and stakeholder consultation 

DGFT clarifies that the component is being implemented on a pilot basis, and the enclosed guidelines are also issued for stakeholder consultation. Stakeholders are invited to submit comments/suggestions within 30 days of issuance of the Trade Notice at the email ID provided.

DGFT further states feedback and pilot learnings will be examined, and the guidelines may be refined and then formalised through appropriate notifications under the FTP/HBP framework.

Practical checklist for MSME exporters 

Before you approach your bank for export credit under this benefit, ensure:

Eligibility documents are in place

Active IEC + valid Udyam registration

Your export product HS (6-digit) is on the positive list (Annexure-II)

File DGFT online intent before applying for export credit (UIN generation)

Keep UIN mapping clean

one UIN per bank; separate UINs if multiple banks

Stay within the annual ceiling

coordinate with your bank to keep total claims within the cap

Conclusion

DGFT has launched the Interest Subvention for Pre- and Post-Shipment Export Credit under Export Promotion Mission (EPM) – Niryat Prothsahan with immediate effect, specifically to improve access to pre- and post-shipment rupee export credit for MSME exporters by reducing credit cost and supporting working-capital needs.

For eligible MSME exporters, the scheme provides interest subvention @ 2.75% p.a. on Pre-Shipment and Post-Shipment Rupee Export Credit, subject to an annual cap of ₹50 lakh per financial year, and product coverage restricted to the notified positive list of HSN (6-digit) tariff lines.

Operationally, exporters must file an online intent (UIN generation) before availing export credit, and banks pass the benefit upfront and claim reimbursement through the RBI-led process.

FAQs 

1) Who can benefit from this scheme?
It is intended for MSME exporters, including MSME manufacturer exporters and merchant exporters, subject to scheme conditions.

2) What is the interest subvention rate?
2.75% per annum on Pre-Shipment Rupee Export Credit and Post-Shipment Rupee Export Credit.

3) What is the maximum benefit per exporter?
Up to ₹50 lakh per MSME exporter per financial year.

4) Is it available for all products / HS codes?
No. Applicability is restricted to MSME exporters under the notified positive list of HSN six-digit tariff lines (Annexure-II / Appendix-B).

5) Does any export loan qualify?
Support is limited to export credit extended in accordance with RBI’s Master Directions on Pre- and Post-Shipment Export Credit.

6) Do exporters receive the benefit directly from DGFT/RBI?
Banks are required to pass on the benefit upfront to eligible exporters and submit claims to RBI for reimbursement.

7) What is the key first step for an MSME exporter to avail the scheme?
File an online declaration of intent on the DGFT portal prior to applying for export credit; a UIN is generated upon submission.

8) Can the same UIN be used for multiple banks?
No. Each UIN corresponds to one lending bank; if export credit is taken from multiple banks, separate UINs may be generated.

9) How long is the UIN valid?
It remains valid until the end of the relevant financial year.

10) Where and how do exporters file the intent?
Annexure-III lays out the DGFT portal steps

Disclaimer (Important)

This blog is prepared strictly on the Trade Notice No. 20/2025-26 dated 02 Jan 2026 and enclosed annexures). For actual availing, exporters should refer to the latest DGFT/RBI operational instructions and coordinate with their lending bank as per the scheme process described.