2. Need for such type of finance?
The institutions which provides the credit,
EXIM BANK
COMMERCIAL BANK
ECGC
3. RBI ensures a free flow of financial assistance
to exporters at a concessional rate of interest
against export order
The commercial banks provide the loan at a
reduced interest
Commercial banks get re-finance facility by
RBI and EXIM bank against the loan extended
by them to the exporters
5. Provides working capital finance to an exporter
Basic purpose is to enable the eligible exporters
to procure raw materials, supplies, process or
manufacture, warehouse or ship the goods
meant for exports
6. Packing credit
Advance against incentives receivables from
govt. covered by ECGC guarantee
Advance against cheque /drafts received as
advance payment
7. Enables an exporter to pack the goods meant
for exports
Includes loan/advance/credit granted by a
bank to an exporter to buy raw materials,
supplies, etc. required for processing,
manufacturing, packing of goods for exports
Facility can be shared with supporting
manufacturer or the sub-supplier
8. Pre-shipment finance is granted for a short
period of time as it is essentially a working
capital finance.
Initially it is 180 days subject to lead time
In case of unforeseen circumstances the bank
may give a 90 days extension
Max. period is 270 days.
9. PERIOD OF CREDIT RATE OF
INTEREST
Upto 180 days not exceeding PLR
minus
2.5 %age points.
180-270 days not exceeding PLR
plus
2.5 %age points.
270-360 days fixed by the bank.
10. Exporter should:
arrange the set of docs as stipulated in the L/C
submit the docs. along with the Standardized Letter
to bank for collection/negotiation of docs.
This letter to the bank provides comprehensive
coverage of the various points
11. This form of finance is available after the shipment of goods
This facility is extended to the exporters in whose name the goods
were shipped OR an exporter in whose name export documents
are transferred.
It can be short term finance or a long term finance depending
upon the nature of export.
It is essentially a working capital finance granted on the strength
of accounts receivables.
This facility is extended only against the shipping documents
which evidence that the goods have been shipped
Credit is extended to finance export receivables for the period
commencing from the date of submission of docs. to the bank to
the date of realisation of export proceeds.
The post shipment credit is essentially a form of fund based
financing
The concessional rate of interest is charged upto a maximum
period of 6 months from the date of shipment of goods
12. Negotiation/Payment/Acceptance of export docs.
under L/C
Purchase/ Discount of export docs under
confirmed orders/ export contracts etc.
Advances against export bills sent on collection
basis
Advances against undrawn balance of exports
Advances against receivables from GOI
Advances against retention money relating to
exports
Advances against approved deemed exports
Notas do Editor
Export Credit Guarantee Corporation of India Limited, was established in the year 1957 by the Government of India to strengthen the export promotion drive by covering the risk of exporting on credit.Being essentially an export promotion organization, it functions under the administrative control of the Ministry of Commerce & Industry, Department of Commerce, Government of India. It is managed by a Board of Directors comprising representatives of the Government, Reserve Bank of India, banking, insurance and exporting community.