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 exporters, 2% for other eligible exporters. Free for Indian exporters.
Export Credit Details
Enter the loan details to estimate your subvention benefit.
Subvention Claim Support
Need help claiming interest subvention from your AD bank or resolving claim rejections? Submit your details for assistance.
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. 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.
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 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.