Export Packing Credit

Parameters Features
Nature of Facility Pre-shipment finance extended as working capital.
Purpose For purchase of raw materials, processing, packing, transportation and warehousing of goods meant for export,It has two essential features,VIZ:
(a) Existence of an export order and / or letter of credit and (b) liquidation of the packing credit by submission of export documents within a stipulated period.
Target Group Manufacturers as well as merchant exporters, are eligible to avail Rupee Packing Credit at concessional rate of interest.
Eligibility Criteria
  • Existing Customer already availing credit facilities from us.
  • New units.
  • Takeover of existing units from other Banks/ FIs with satisfactory track record. (Credit information report to be obtained)
Quantum of loan (Min/Max)
  • Need based Finance
Margin (%) The percentage of margin is determined depending on the nature of order, commodity, capability of exporter, etc. keeping in view the spirit behind RBI guidelines for liberal finance to the export
Pricing Competitive Pricing
Collateral Security As applicable in case of Cash Credit / Working capital limits)
Repayment Period The period for which the Bank gives packing credit depends on the manufacturing / trade cycle or specific requirements of the individual export, normally not exceeding 180 days.
Processing Fee As applicable to cash Credit Facility/Working Capital Limits
Other Conditions 1. Since packing credit loans are concessional and purpose oriented, it will be necessary to ensure proper end use of amounts disbursed to the exporters.
2. ECGC- Bank’s export credit portfolio (pre-shipment or Packing Credit) is insured under Export Credit Insurance for Banks Guarantee Scheme (ECIB WTPC of ECGC Ltd. Premium cost will be borne by bank for those rated ‘A’ and above.