What is the MSME Interest Subvention Scheme 2026?

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Direct Answer
The MSME Interest Subvention Scheme 2026 is an export promotion tool designed to lower the borrowing costs for Indian MSME manufacturers and merchant exporters, cushioning them against high global financing rates.
🧠 Pedagogical Anchor: While general domestic MSME loans get a standard 2% subvention (as covered in the Baseline), the Government offers a “premium” 2.75% to MSMEs who bring in foreign exchange through exports.
Applicability
Pre-shipment & Post-shipment Rupee Export Credit
2026 Subvention Rate
2.75%
Eligibility List
Must fall under DGFT’s notified positive list of HSN 6-digit tariff lines

Exam tip: The older “Interest Equalisation Scheme” historically featured a 3% rate for MSMEs, but the new 2026 framework has firmly reset this to 2.75%. Do not select 3%.

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