Interest Subvention Support under Export Promotion Mission
Trade Notice on Interest Subvention Support under Export Promotion Mission
The Government of India, through the Ministry of Commerce & Industry and the Directorate General of Foreign Trade (DGFT), has issued Trade Notice No. 03/2026-27 dated 13 May 2026 regarding clarifications on interest subvention assistance for pre-shipment and post-shipment export credit under the Export Promotion Mission (EPM) – Niryat Protsahan.
This clarification is issued in continuation of earlier Trade Notices dated 02.01.2026, 16.01.2026, 20.03.2026, and 20.04.2026 relating to the operational guidelines of the scheme.
Background
DGFT received several representations from exporters and lending institutions regarding practical issues in the implementation of the Unique Identification Number (UIN) system under the Equalisation Intervention Scheme. The concerns mainly arose due to onboarding of multiple banks, integration of banking systems, and procedural adjustments required for UIN validation and claim filing.
The following major difficulties were highlighted:
- Cases where a UDIN had been generated under the earlier scheme, but export credit was disbursed on or after 02 January 2026.
- Cases where loans were sanctioned and disbursed on or after 02 January 2026 before completion of the UIN generation process.
Clarification Issued by DGFT
After examination of the matter, DGFT has decided to allow a special compliance window to facilitate smoother implementation and reduce operational hardship for exporters and banks.
Under the revised provisions:
- Exporters whose eligible export credit was disbursed during FY 2025-26 on or after 02 January 2026 may generate the required UIN even after loan disbursal.
- This relaxation also applies to entities that received loans under EPM before obtaining a UIN.
Key Amendments Introduced
For FY 2025-26 (02.01.2026 to 31.03.2026)
Interest subvention claims can be submitted by banks even where the UIN was generated after disbursal of eligible export credit, subject to the following conditions:
- The eligible export credit must have been disbursed on or after 02 January 2026.
- The UIN must be generated on or before 31 May 2026.
Further clarifications include:
- Exporters must ensure that the UIN is generated for the specific financial year in which the loan disbursal took place.
- Interest subvention will be available from the actual date of loan disbursal and not merely from the date of UIN generation.
- Banks are required to calculate and credit the eligible interest subvention, including for the period beginning 02 January 2026, on a priority basis.
For FY 2026-27 Onwards
- A UIN generated within 15 days from the date of original disbursal of eligible export credit will be considered valid for claiming interest subvention benefits.
- In such cases, interest subvention will remain admissible from the original disbursal date.
Other Important Conditions
- If a borrower changes the lending bank, a fresh UIN must be generated reflecting the revised bank details.
- Transfer or portability of an existing UIN to another bank will not be permitted.
- The applicable rate of interest subvention will be the rate prevailing on the date of loan disbursal.
- Banks must ensure that claims filed against a UIN correspond to the same financial year in which the credit was disbursed.
Direction to Banks and Lending Institutions
All scheduled commercial banks and participating lending institutions have been instructed to implement these revised provisions immediately and in a uniform manner.
The Trade Notice has been issued with the approval of the Competent Authority and signed by A.G. Subramanian, Deputy Director General of Foreign Trade.
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