Launched in April 2015, the interest equalisation scheme (IES) scheme offers an interest equalisation benefit at the rate of 2 per cent on pre and post-shipment rupee export credit to merchant and manufacturer exporters of the identified 410 tariff lines and 3 per cent to all MSME manufacturer exporters.
Earlier this month, the Directorate General of Foreign Trade (DGFT) had extended the scheme for three months from September 30 to December 31, 2024, to support exporters. The extension was applicable for MSME manufacturing exporters effective with the additional condition that fiscal benefits of each MSME, on aggregate, will be restricted to Rs 50 lakhs for FY 2024-25 till December 2024.
The scheme was earlier extended till September 30 from August end for MSME exporters while the claims of non-MSME exporters were accepted till June 30.
To apply for the scheme:
- Visit the DGFT website https://www.dgft.gov.in/CP and login to the portal using valid credentials
- Post login, click on Services > Interest Equalization Scheme (IES) in the menu options
- On the IES page, click on ‘Apply for Interest Equalisation Scheme’ and then click on ‘Start Fresh Application’
- Enter required details – basic details, address details, MSME details, other details
- ‘Basic details’ dropdown on the screen will display all the details linked to the applicant’s IEC (Importer-Exporter Code)
- Similarly, address and MSME details are also auto-populated based on the information in the IEC
- In other details, provide details such as the number of employees in the firm, whether the applicant is from a northeastern state, whether the applicant is SC/ST or a woman
- The next part of the application is the ‘IES Details’ screen. Here, an application number (ARN) is generated for the application which will be displayed on the top. Details would include sector, ITC (HS) code, product description, country of export, etc.
- Applicants can choose only one sector of products for one application with the facility of adding items with different ITC (HS) codes within the same sector
- Next and the last sub-section of the IES Details screen is the ‘Banks Details’ section in which the applicant selects the bank from which the loan is to be procured
- By default all the banks available in the IEC are selected, however, the applicant can select/deselect as per the need
- Next, click on the ‘Save & Next’ button, and the system will take the applicant to the next screen which is ‘Benefits Takes’. Here, the applicant needs to share the details of benefits that he/she has availed from the DGFT till date
- These details are auto-populated from IEC. Also, applicant can add new benefits, if required
- Save it and attach Export Orders or IES Attachments in PDF or JPG formats. Next, click on ‘Upload Attachments’
- Next comes the ‘Declaration’ screen where the applicant has to read and accept the terms and condition and click on save and next button to view the application summary
- Click on the ‘sign’ button after reviewing the application summary
- Pay Rs 200 and after submission of the application, a new file number and a UIN number will be generated. The UIN number can be used by the applicant I/E to view the application’s status. The UIN number is valid for 1 year from the date of generation
