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

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 Existing Text Revised/Inserted Text No. Draft Export credit extended by lending The credit facility shall be eligible for the HBP institutions in accordance with the interest subvention benefit as per the Para Reserve Bank of India’s ongoing directions of Reserve Bank of X.1(b) consolidated Directions on Credit India’s Consolidated Directions on Credit Facilities, as amended from time Facilities in force including in respect to to time, shall qualify for support period and structure. under this component. Inserted Interest subvention shall not be -Draft admissible from the date on which the Appendi loan account is classified as a Non- x-A Performing Asset (NPA), and no Para subvention benefit shall be extended 3(f) with effect from such date. Draft Where an exporter avails export Where an exporter avails export credit from HBP credit from more than one lending more than one lending institution, thePara institution, the responsibility to responsibility to ensure that aggregate X.4(e) ensure that aggregate interest interest subvention claims remain within the subvention claims remain within prescribed annual ceiling shall rest solely the prescribed annual ceiling shall with the beneficiary exporter. Any excess rest solely with the beneficiary claim identified shall be recoverable in exporter. Any excess claim accordance with applicable provisions. An identified shall be recoverable in undertaking may be obtained by the accordance with applicable banks from the exporter on cross-bank provisions. interest subvention not exceeding the Rs.50 lakh per IEC limit. Draft The Entity shall furnish the The Entity shall furnish the applicable UIN HBP applicable UIN to their lending to their lending bank, and the bank shall Para bank, and the bank shall report report interest subvention claims mapped to X.4(d) interest subvention claims the corresponding UIN. 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 Addition of new Tariff Line to the Draft Positive List: HBP X.1  No retrospective benefit shall be (f)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 Title: Claim submission by banks/lending Appendi institutions. X A a. The Bank must first register on the Para-5 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 theworkflow for claim submission, in the prescribed format. Inserted  UIN and UDIN indicated in the Draft documents generated on the DGFT Para X.4 portal refer to the same unique (f) 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 In cases where the borrower In cases where the borrower repays the Appendi repays the entire loan amount in entire loan amount in advance before the x A advance before the stipulated stipulated tenure, the lending institution Para tenure, the lending institution shall shall report the early foreclosure of the loan 4(d) report the early foreclosure of the account to the RBI. Interest subvention loan account to the RBI. shall be applied only for the actual period the credit remained outstanding. Draft Export credit shall continue to be Export credit shall continue to be HBP sanctioned and disbursed by sanctioned and disbursed by lending Para eligible commercial lending institutions as per applicable Reserve Bank X.2(a) institutions as per applicable RBI of India’s Consolidated Directions on Credit guidelines. The interest Facilities. The interest subvention shall be subvention shall be passed on passed on upfront to the eligible MSME upfront to the eligible MSME exporter by the lending institution, and the exporter by the lending institution, corresponding reimbursement shall be and the corresponding claimed by the lending institution from the