Interest Equalisation Scheme (IES)

Published on 25 Aug 2025

• The Commerce Ministry has urged the Finance Ministry to extend the Interest Equalisation Scheme (IES) for MSME exporters.

• Launched in 2015, IES is a government initiative that provides subsidized interest rates on export credit to eligible exporters. 

• It helps them access cheaper loans for pre- and post-shipment finance, making Indian exports more competitive globally.

• Export credit is a short-term loan provided to exporters to finance their business activities. 

• It helps them cover costs like raw materials, production, and shipping before they receive payment from international buyers.

• Initially valid for five years, it has been extended multiple times, including during COVID-19.

The scheme is jointly monitored by the Directorate General of Foreign Trade (DGFT) and RBI.

Keywords:

Interest Equalization IES Export credit Export promotion General of Foreign Trade DGFT RBI interest Equalization Scheme IES