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.
Manufacturers as well as merchant exporters, are eligible to avail Rupee Packing Credit at concessional rate of interest.
Existing Customer already availing credit facilities from us.
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
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
As applicable in case of Cash Credit / Working capital limits)
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.
As applicable to cash Credit Facility/Working Capital Limits
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.