DGFT Interest Equalization Scheme (IES)

Organisation : Directorate General of Foreign Trade (DGFT)
Facility Name : Interest Equalization Scheme (IES)
Applicable Country : India
Website : https://www.dgft.gov.in/CP/

What is DGFT Interest Equalization Scheme (IES)?

The Interest Equalisation Scheme for pre and post shipment rupee export credit is formulated to provide credit to the exporters at competitive rates. It is a tool for reducing the high cost of credit incurred by Indian exporters viz-a-viz their foreign counterparts. The scheme provides for specified interest rate subvention to all MSME exporters exporting any HS line and to merchant and large exporters exporting along the specified lines.

Related / Similar Facility : DGFT Steel Import Monitoring System (SIMS)

How To Apply For Interest Equalisation Scheme?

All the MSME manufacturer exporters and other merchant and manufacturer exporter exporting along 410 HS lines can apply for IES. To apply for Interest Equalisation Scheme, an IEC is required. Applicant needs to submit Rs. 200/ UIN.

FAQ On Interest Equalization Scheme (IES)

Frequently Asked Questions FAQ On Interest Equalization Scheme (IES)

What are the benefits of Interest Equalisation Scheme?
The Interest Equalisation Scheme for pre and post shipment rupee export credit is formulated to provide credit to the exporters at competitive rates. It is a tool for reducing the high cost of credit incurred by Indian exporters viz-a-viz their foreign counterparts. The scheme provides for specified interest rate subvention to all MSME exporters exporting any HS line and to merchant and large exporters exporting along the specified lines.

What if, the Bank details are present in IEC details but not available in UIN application?
If this is the case, please check the list of banks eligible for IES scheme. The valid bank list may be checked from UIN application form in IES details tab. A bank present in the IEC details will only be displayed if it is present in valid bank list for IES.

My firm/entity worked in two different sectors, but system is not allowing me to submit details of both sectors in one application. What should I do?
As of now, For Manufacturer/merchant exporter (Non MSMEs), only one sector per UIN can be selected. For MSMEs manufacturer exporter, no sector selection is required, any number of ITC HS codes can be selected.

Do we need to update details for each HS code?
Yes, you need to update details for each HS code via the add details button in “IES Details” tab.

What needs to be done when sector dropdown is disabled?
Kindly check if Industrial Registration Details contains MSME, if yes then the sector field would be disabled and exporter will have to search the ITC(HS) code manually.

Where I will get notified for my application of UIN?
All notifications will go to registered email ID and Mobile Number of IEC holder.

What should I do if I don’t receive any update on my UIN application?
Firstly, please ensure that the application is still not in your drafts. Next, you can check the status under the “Submitted Applications >> Search IES File Number > Action > View Life Cycle” Even then, if your query hasn’t been resolved, please contact the DGFT helpdesk for support.

What is the list of documents for UIN application?
You can attach an export order, or any other supporting document to your application by selecting another option in the attachment section before submitting application and generation of UIN.

How many attachments I can upload in the attachment section and in which format?
You can submit up to 10 attachments along with the application. In case you have more than 10 attachments in that case you must submit the physical copies of the same to the concerned bank within 7 days of UIN application submission. Only JPG and PDF formats are allowed.

Which year annual turnover has to be mentioned under ‘Basic Details tab?
The exporter needs to mention the turnover of the previous year in INR.

What are the pre-requisites to update the status to MSME exporters?
The MSME exporter is required to update his IEC profile along with the MSME Udyam registration details.

How to ascertain the number of employees to be filled under ‘Basic details’ tab?
The number of employees as on the date may be mentioned in the UIN application

Whether the applicant can fill multiple countries/HS codes under single application.
Yes, the applicant can fill multiple countries/HS codes under single application in ‘IES details’ tab via Add Details.

What is the procedure of making amendments in the application submitted?
The IES application whose UIN has been generated cannot be amended/corrected. The exporter must verify all the details filled in before final submission of the draft application. If required, the exporter can generate another UIN.

Is UIN number required for each Export disbursement loan or is it only one time activity for customer for all his export transactions which are eligible for Equalisation, as it is mentioned that validity of UIN is one year in notification.
The flexibility has been provided to banks and exporters either to use single UIN or multiple UINs as per their convenience and data validation needs. Exporters can also project the estimated details for the entire year in a single UIN. As per their transactions banks can update the loan disbursed/subvention provided against the submitted UIN.