Amendments to Guidelines for Interest Subvention Support for Pre- and Post-Shipment Export Credit under Export Promotion Mission – Niryat Protsahan

The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce & Industry, Government of India, has issued Trade Notice No. 33/2025-26 dated 20th March 2026, announcing amendments and insertions to the guidelines for Interest Subvention Support for Pre- and Post-Shipment Export Credit under the Export Promotion Mission (EPM) – Niryat Protsahan. These changes aim to provide operational clarity and certainty to exporters and lending institutions. Below is a detailed overview of the amendments and their implications.

Key Amendments and Insertions 

Eligibility for Interest Subvention

Existing Text: 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.
Revised Text: 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 the period and structure.

Non-Performing Assets (NPA)

Inserted Text: Interest subvention shall not be admissible from the date on which the loan account is classified as a Non-Performing Asset (NPA). No subvention benefit shall be extended with effect from such date.

Cross-Bank Interest Subvention

Revised Text: Where an exporter avails export credit from more than one lending institution, the responsibility to ensure that aggregate interest subvention claims remain within the prescribed annual ceiling shall rest solely with the beneficiary exporter. 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.

Unique Identification Number (UIN)

Revised Text:
- A new UIN must be generated reflecting revised bank details if the borrower changes the lending bank. Portability of UIN is not permitted.
- The UIN must be generated on or before the date of disbursal of pre-shipment or post-shipment export credit. Failure to generate the UIN will result in the ineligibility of the disbursal for interest subvention support.
- The rate of interest subvention applicable will be the rate prevailing on the date of loan disbursal.

Positive List of Tariff Lines

Inserted Text:
- No retrospective benefit shall be admissible.
- Interest subvention shall be available only for eligible export credit disbursed on or after the date of inclusion of the tariff line in the Positive List.
- If a tariff line is subsequently rendered ineligible, pre-shipment credit already disbursed prior to such ineligibility shall remain eligible for subvention. However, post-shipment export credit disbursed thereafter will not be eligible.

Claim Submission by Banks

Inserted Text:
- Banks must register on the online portal and log in to submit reimbursement claims.
- Banks must enter the UIN of borrowers in the designated field to review borrower details submitted during the intent-to-claim application.
- Additional information related to the loan extended to the borrower must be provided.
- Claims must be submitted in the prescribed format along with the workflow for claim submission.

Early Foreclosure of Loan Accounts

Revised Text: 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.

Export Credit Disbursement

Interest subvention shall be admissible only for export credit (pre-shipment and post-shipment) disbursed on or after 2nd January 2026. Export credit disbursed prior to this date will not be eligible.
If export credit is disbursed after 2nd January 2026, interest subvention support will apply from the date of loan disbursement, provided the UIN/UDIN has been generated and submitted to the bank on the date of disbursement.

Renewal of Credit Facility

When a credit facility is renewed with a top-up, only the additional amount disbursed will be treated as fresh credit exposure and will be eligible for subvention at the rate applicable on the date of disbursement. The existing outstanding portion will continue to be governed by the subvention rate applicable at the time of its original disbursement.

Verification of IEC Status

At the time of the intent-to-claim application for generating the UIN/UDIN, the status of the Importer Exporter Code (IEC) is verified by the online system. Banks may also verify the IEC status on the DGFT website. Open APIs are hosted on API Setu for consumption by bank systems for IEC verifications.

Implications for Exporters and Lending Institutions

These amendments aim to streamline the process of availing interest subvention benefits under the EPM – Niryat Protsahan scheme. Exporters must ensure compliance with the revised guidelines, particularly regarding the generation of UIN/UDIN and adherence to the Positive List of tariff lines. Lending institutions are required to follow updated procedures for claim submission and ensure proper verification of borrower details.

The changes also emphasize the importance of timely generation of UIN/UDIN and adherence to RBI guidelines for credit facilities. Exporters and banks must work collaboratively to ensure that all requirements are met to avail the benefits of the scheme.

Conclusion

The updated guidelines under Trade Notice No. 33/2025-26 reflect the Government of India’s commitment to promoting exports and supporting exporters through interest subvention benefits. By introducing operational clarity and addressing key issues such as NPAs, UIN portability, and claim submission processes, the DGFT aims to enhance the efficiency and effectiveness of the Export Promotion Mission – Niryat Protsahan. Exporters and lending institutions are advised to carefully review the amendments and ensure compliance to maximize the benefits of the scheme.

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Source: DGFT

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