Facilities for exporters and importers

Pre-Shipment Credit is short-term finance extended by banks to exporters before shipment of goods, enabling them to procure raw materials, process, pack, and ship the export order. It is governed by RBI guidelines and is typically provided at concessional interest rates.

Covers banks against losses on packing credit advances to exporters.

Packing Credit is generally allowed for a maximum period of 360 days from the date of first disbursement, though banks may extend it further with RBI permission in exceptional cases. The normal running period is up to 180 days.

Declares export proceeds will be repatriated within prescribed time limits.

Post-Shipment Credit is finance provided to exporters after the shipment of goods against export documents. Its main forms include export bills purchased or discounted (under LC or on collection basis), advances against bills sent for collection, and advances against undrawn balances.

Allows exporters to extend credit to foreign buyers for capital goods.

ECGC (Export Credit Guarantee Corporation of India) is a government-owned entity that provides export credit insurance and guarantees to exporters and banks, covering risks of non-payment by overseas buyers due to commercial or political reasons. It enables banks to extend credit more confidently to exporters.

Subsidizes interest on pre/post-shipment credit to boost export competitiveness.