Merchant exporters to get easier credit under interest equalisation scheme

The sectors covered are mostly labour-intensive and include agriculture or food items, auto components, handicraft, electrical engineering items, and telecom equipment

Paying heed to the long-standing demand by the trading community, merchant exporters can now avail of pre- and post-shipment credit at lower rates through the Interest Equalisation Scheme (IES). 

The proposal will entail benefits of around Rs 600 crore to exporters on interest equalisation, for the remaining period of the scheme, set to end in April 2020. The IES allows small and medium exporters in labour-intensive sectors to avail of loans from banks at a lower rate of 3 per cent.

Originally announced as a measure to boost exports for five years, the IES on pre- and post-shipment rupee export