Export Finance & Credit Support Schemes
IES (Interest Equalisation Scheme)
Advisory Services
Reduce Export Financing Costs with Structured Interest Equalisation Advisory
Export financing is one of the largest cost components for exporters. The Interest Equalisation Scheme (IES) enables eligible exporters to reduce borrowing costs on pre-shipment and post-shipment credit - directly improving margins and cash flow. At Shangrila Corporate Services Pvt Ltd, we help exporters identify, structure, and fully utilise interest equalisation benefits, ensuring no eligible subsidy is left unclaimed. Reduce interest cost on export credit Ensure correct eligibility and bank alignment Identify missed or underutilised benefits
Service at a Glance
Cost Reduction
Reduce your borrowing cost by 2% - 3% (as applicable)
Better Cash Flow
Improve your working capital efficiency
Market Advantage
Enhance your export competitiveness through a lower overall cost of funds
Immediate Relief
Experience a direct benefit through a reduced interest burden
Overview
What is Interest Equalisation Scheme (IES)?
The Interest Equalisation Scheme is a Government of India initiative designed to support exporters by subsidising interest on export credit.
Under this scheme, exporters availing working capital finance for exports receive a specified percentage of interest equalisation through their banks. This effectively reduces the cost of borrowing and enhances competitiveness in international markets.
Unlike direct incentive schemes, IES works through the banking system, which makes correct structuring and compliance critical to fully realise its benefits.
Key Service Highlights
- Cost Reduction: Reduce your borrowing cost by 2% - 3% (as applicable)
- Better Cash Flow: Improve your working capital efficiency
- Market Advantage: Enhance your export competitiveness through a lower overall cost of funds
- Immediate Relief: Experience a direct benefit through a reduced interest burden
Advisory Note
Structured advisory helps evaluate eligibility, prepare accurate documentation, and reduce execution risk while pursuing available trade policy benefits.
Suitable For
Who Should Consider IES (Interest Equalisation Scheme)?
This advisory is most relevant for businesses that need eligibility clarity, documentation accuracy, and practical support through the scheme lifecycle.
Typically Beneficial For
Exporters availing pre-shipment or post-shipment finance
MSME exporters seeking cost optimisation
Merchant exporters with regular export cycles
Companies with significant export turnover and credit exposure
Key Benefits
Key Benefits of IES (Interest Equalisation Scheme)
Structured implementation can help improve cost efficiency, reduce procedural risk, and support better trade outcomes.
01
Cost Reduction
Reduce your borrowing cost by 2% - 3% (as applicable)
02
Better Cash Flow
Improve your working capital efficiency
03
Market Advantage
Enhance your export competitiveness through a lower overall cost of funds
04
Immediate Relief
Experience a direct benefit through a reduced interest burden
Process
How IES (Interest Equalisation Scheme) Works
A practical workflow for evaluating eligibility, preparing documentation, submitting applications, and managing follow-through.
01
Exporter avails pre-shipment or post-shipment credit from bank
02
Bank verifies eligibility under IES
03
Interest equalisation is applied on eligible loans
04
Exporter receives benefit as reduced interest cost
Common Pitfalls
Common Challenges Businesses Face
These issues often lead to delays, missed benefits, documentation gaps, or unnecessary compliance exposure.
Lack of awareness of eligibility
Incorrect classification under eligible sectors
Non-alignment with bank processes
Documentation gaps
Missed claims or under-utilisation of available limits
Our Services
Our Approach to IES (Interest Equalisation Scheme)
End-to-end advisory support focused on eligibility, documentation, filing, compliance, and benefit optimisation.
Eligibility Assessment
Detailed evaluation of export profile, sector classification, and credit utilisation.
Structuring & Alignment
Advisory on aligning export credit with scheme requirements
Bank Coordination Support
Working closely with banks to ensure correct implementation of interest equalisation.
Documentation & Compliance
Ensuring all required documentation and procedural aspects are correctly handled.
Benefit Optimisation
Identifying gaps, missed opportunities, and ensuring full utilisation of available benefits.
Documentation
Documents Required to Get Started
Share these documents with our team so we can assess eligibility and begin structuring the advisory process.
Import Export Code (IEC)
Bank sanction letters
Export turnover details
Loan details (pre/post shipment)
MSME certificate (if applicable)
FAQ
Frequently Asked Questions
An interest subsidy on export credit that reduces the effective borrowing cost.
Through authorised banks as a reduction in interest charged on eligible export loans.
Not always. Proper classification, eligibility validation, and coordination are often required.
No, eligibility depends on exporter category, sector, and credit usage.
Yes, due to documentation gaps, incorrect classification, or lack of alignment with banks.
Not necessarily. A case-specific assessment is required to determine applicability.
Why SCS
Why Work with Shangrila Corporate Services
We focus on ensuring that schemes translate into real financial outcomes, not just advisory reports.
Experience in foreign trade policy and export advisory
Practical understanding of DGFT and export finance ecosystem
Execution-focused approach, including coordination with banks
Emphasis on compliance, accuracy, and benefit optimisation
Get Expert Advisory
Maximise Your Export Financing Efficiency Today
Don't overpay on export credit when you are eligible for interest equalisation benefits. Get expert advisory to reduce your cost of funds and optimise export financing. Talk to our experts to check your eligibility, identify potential savings and implement benefits effectively.
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