About the scheme

• The Government had announced the Interest Equalisation Scheme on Pre and Post Shipment Rupee Export Credit to eligible exporters. 
• The Scheme was launched in 2015 and was initially valid for 5 years. 
• The Scheme continued thereafter, including one year extension during COVID, and with further extensions and fund allocations. 
• Currently, the Scheme provides an interest equalisation benefit at the rate of 2 per cent on pre and post shipment Rupee export credit to merchant and manufacturer exporters of 410 identified tariff lines and 3 per cent to all MSME manufacturer exporters.

Why in News?

• The government has approved an additional allocation of 2,500 crore rupees for continuation of Interest Equalisation Scheme on Pre and Post Shipment Rupee Export Credit till 30th of June next year. 
• This would help exporters from identified sectors and all MSME manufacturer exporters to avail pre and post shipment Rupee export credit at competitive rates. Availability of pre and post shipment packing credit at competitive rates is important for the exports sector in order to compete internationally. 

https://newsonair.gov.in/News?title=Govt-approves-additional-allocation-of-Rs-2%2c500-crore-for-continuation-of-Interest-Equalisation-Scheme&id=472795