Interest Subvention Calculator

Rates follow RBI's Interest Equalization Scheme (3% for MSME manufacturers, 2% for other eligible exporters). Confirm eligibility with your bank.

Estimate the interest subvention benefit on your pre- and post-shipment rupee export credit under RBI's Interest Equalization Scheme — 3% for MSME manufacturer exporters, 2% for other eligible exporters. Free for Indian exporters.

Quick Answer: How is interest subvention calculated?

Under RBI's Interest Equalization Scheme, eligible exporters get 3% (MSME manufacturer exporters) or 2% (other eligible exporters in notified HS lines) on rupee pre- and post-shipment export credit. The benefit is the lower of loan × subvention rate and the interest actually charged — you can never receive more than the interest. Your AD bank adjusts it against interest directly on the loan account; there is no separate application. Enter your loan details below for a live estimate — or send it to our subvention desk on WhatsApp.

Scheme status (September 2026): The Interest Equalization Scheme is in force on pre- and post-shipment rupee export credit — 3% for MSME manufacturer exporters and 2% for other eligible exporters in notified HS lines. RBI extends the scheme by circular periodically; confirm the current window and your facility's eligibility with your AD bank before relying on the rate.

Eligibility quick-check: banks typically require all of the following before applying the subvention —

Export Credit Details

Enter the loan details to estimate your subvention benefit.

Use 12 for an annualized view, or your facility’s actual credit period.

✅ Rate schedule verified September 2026 (RBI Interest Equalization circulars) — rates and eligibility change periodically; confirm with your AD bank.

Quick:
Need help claiming interest subvention from your AD bank, or facing a claim rejection? Send your loan details to our desk on WhatsApp using the form at the bottom of this page.

Subvention Estimate

Indicative benefit under the Interest Equalization Scheme.

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How it’s calculated

Formula: Annual interest = Principal × Bank rate ÷ 100. Annual subvention = the lower of (Principal × Subvention rate ÷ 100) and the annual interest itself. Period subvention = Annual subvention × Months ÷ 12. Effective rate = Bank rate − Subvention rate (shown as 0.00% “benefit capped” when the subvention rate meets or exceeds the bank rate). Net cost = Period interest − Period subvention.
Example: ₹50,00,000 loan at 9.5% for 12 months with 3% MSME subvention → annual interest ₹4,75,000, subvention ₹1,50,000, effective rate 6.5%, net cost ₹3,25,000.
What it means: The subvention benefit is capped at the actual interest you pay — you can never receive more benefit than the interest charged. The estimator uses RBI’s Interest Equalization Scheme rates (3% for MSME manufacturers, 2% for other eligible exporters); your bank applies the notified rate on your specific export credit facility. The estimate assumes simple interest quoted per annum on the credit — the standard basis for pre- and post-shipment export credit; a reducing-balance term loan would compute differently.

Understanding the Interest Equalization Scheme

RBI's Interest Equalization Scheme provides interest subvention on pre- and post-shipment rupee export credit to make export finance cheaper. Eligible exporters currently receive 3% subvention (MSME manufacturer exporters) or 2% subvention (other exporters in notified sectors such as textiles, leather, engineering and pharmaceuticals). The subvention is adjusted against the interest charged by the AD bank.

This calculator estimates your annual and period benefit: Annual subvention = Loan × Subvention rate, capped at the actual interest cost. The effective interest rate is your bank rate minus the subvention. Confirm eligibility and claim timelines with your AD bank branch.

Frequently Asked Questions

Who is eligible for the 3% subvention?

MSME manufacturer exporters are eligible for the 3% subvention on rupee export credit under the scheme. Other eligible exporters in notified HS lines receive 2%.

Does subvention apply to foreign currency credit?

The Interest Equalization Scheme applies to rupee (INR) pre- and post-shipment export credit. Foreign currency export credit is outside this scheme.

How is the subvention claimed?

The AD bank adjusts the subvention against interest and claims reimbursement from RBI through the nodal agency. The exporter usually sees the reduced effective rate directly on the loan account.

What is the current interest subvention rate for exporters?

Under RBI's Interest Equalization Scheme, eligible MSME manufacturer exporters receive 3% and other eligible exporters in notified HS lines receive 2% on pre- and post-shipment rupee export credit. The calculator estimates the benefit; confirm current eligibility with your bank.

Are the subvention rates official?

Rates follow RBI's Interest Equalization Scheme notifications. Schemes and eligibility can change, so verify the applicable rate and your eligibility with your AD bank or the DGFT portal.

Is the Interest Subvention Calculator free to use?

Yes. The Interest Subvention Calculator is 100% free for personal and commercial use — no registration, login or payment required.

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