Clarification on Support for Interest Subvention for pre-shipment and post-shipment credit

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Government of India Ministry of Commerce & Industry Department of Commerce Directorate General of Foreign Trade Vanijya Bhawan, New Delhi Trade Notice No. 33/2025-26 Dated: 20th March 2026 Subject: Amendments to Guidelines for Interest Subvention Support for Pre- and Post-Shipment Export Credit under Export Promotion Mission – Niryat Protsahan– regarding In reference to the guidelines of Interest Subvention Support for Pre- and Post-Shipment Export Credit under Export Promotion Mission (EPM) in Trade Notice No. 20/2025-26 dated January 02, 2026, and Trade Notice No. 22/2025-26 dated January 16,2026 the following amendments and insertions are hereby issued for operational clarity and certainty. These shall form part of the Interest Subvention Support for Pre- and Post-Shipment Export Credit under Export Promotion Mission (EPM) - Niryat Protsahan as issued earlier- Para No. Existing Text Revised/Inserted Text Draft HBP Para X.1(b) Export credit extended by lending institutions in accordance with the Reserve Bank of India’s consolidated Directions on Credit Facilities, as amended from time to time, shall qualify for support under this component. The credit facility shall be eligible for the interest subvention benefit as per the ongoing directions of Reserve Bank of India’s Consolidated Directions on Credit Facilities in force including in respect to period and structure. Inserted -Draft Appendi x-A Para 3(f) Interest subvention shall not be admissible from the date on which the loan account is classified as a Non- Performing Asset (NPA), and no subvention benefit shall be extended with effect from such date. Draft HBP Where an exporter avails export credit from more than one lending Where an exporter avails export credit from more than one lending institution, the Para X.4(e) institution, the responsibility to ensure that aggregate interest subvention claims remain within the prescribed annual ceiling shall rest solely with the beneficiary exporter. Any excess claim identified shall be recoverable in accordance with applicable provisions. responsibility to ensure that aggregate interest subvention claims remain within the prescribed annual ceiling shall rest solely with the beneficiary exporter. Any excess claim identified shall be recoverable in accordance with applicable provisions. An undertaking may be obtained by the banks from the exporter on cross-bank interest subvention not exceeding the Rs.50 lakh per IEC limit. Draft HBP Para X.4(d) The Entity shall furnish the applicable UIN to their lending bank, and the bank shall report interest subvention claims mapped to the corresponding UIN. The Entity shall furnish the applicable UIN to their lending bank, and the bank shall report interest subvention claims mapped to the corresponding UIN. A new Unique Identification Number (UIN) shall be required to be generated reflecting the revised bank details in cases where the borrower changes the lending bank. Portability of UIN shall not be permitted, and the existing UIN shall not be transferred to the new bank. Further, the UIN must be generated on or before the date of disbursal of pre- shipment or post-shipment export credit, failing which interest subvention support shall not be admissible in respect of such disbursal. The rate of interest subvention applicable shall be the rate prevailing on the date of loan disbursal. Inserted Draft HBP X.1 (f) Addition of new Tariff Line to the Positive List:  No retrospective benefit shall be admissible.  Interest subvention shall be available only in respect of eligible export credit disbursed on or after the date of inclusion of the tariff line in the Positive List.  Where a tariff line is subsequently rendered ineligible, pre-shipment credit already disbursed prior to such ineligibility shall continue to remain eligible for subvention; however, interest subvention shall not be admissible on any post-shipment export credit disbursed thereafter. Inserted Appendi X A Para-5 Title: Claim submission by banks/lending institutions. a. The Bank must first register on the online portal. b. After completing the registration, the Bank will be required to log in to the portal to submit the reimbursement claim online. c. The Bank must enter the list of UIN of the borrowers in the designated field. d. Upon entering the UIN, the bank will be able to review the borrower's details as submitted at the time of filing the intent-to-claim. e. The Bank will also be required to provide additional information related to the loan extended to the borrower. f. The detailed list of data fields is to be submitted, along with the workflow for claim submission, in the prescribed format. Inserted Draft Para X.4 (f)  UIN and UDIN indicated in the documents generated on the DGFT portal refer to the same unique identification number for the interest subvention benefit.  SAMPLE UIN under EPM would be as per the format below - EPMIESxxxxxxxxxxxx.  UIN obtained under the erstwhile Interest Equalisation Scheme(IES) shall not be eligible to pass subvention benefits to exporters under EPM Interest subvention.  Exporters can only apply for a UIN against the notified Positive List of HS Codes at the time of application. Draft Appendi x A Para 4(d) In cases where the borrower repays the entire loan amount in advance before the stipulated tenure, the lending institution shall report the early foreclosure of the loan account to the RBI. In cases where the borrower repays the entire loan amount in advance before the stipulated tenure, the lending institution shall report the early foreclosure of the loan account to the RBI. Interest subvention shall be applied only for the actual period the credit remained outstanding. Draft HBP Para X.2(a) Export credit shall continue to be sanctioned and disbursed by eligible commercial lending institutions as per applicable RBI guidelines. The interest subvention shall be passed on upfront to the eligible MSME exporter by the lending institution, and the corresponding Export credit shall continue to be sanctioned and disbursed by lending institutions as per applicable Reserve Bank of India’s Consolidated Directions on Credit Facilities. The interest subvention shall be passed on upfront to the eligible MSME exporter by the lending institution, and the corresponding reimbursement shall be claimed by the lending institution from the