Packing Credit

Packing Credit – Pre-shipment & Post-shipment Loan

Export Finance is offered to the exporters for executing export order on hand or order receivable in near future. This loan will be provided against specific Export Letter of Credit. The Loan can be granted in two forms:

  • Pre-shipment Loan will be provided in the form of packing credit for the purpose of purchasing, producing, fabricating, packing and shipping of goods meant for exports against lodging an irrevocable Letter of Credit established in favor of the exporter through a reputed bank and/ or confirmed orders / export contracts. The Loan amount can be in maximum up to 70% of the LC value and must be repaid in full including interest from proceeds of the export document.
  • Post-shipment Advance is provided in the form of negotiation of Export Bills (documents) drawn under irrevocable Letters of Credit. The bills are negotiated / discounted at the Bank's prevailing FCY buying rate on the date of negotiation / Discount. In the case of usance bill, the maximum usance period permissible for negotiation / discount is 120 days. The commission / interest for the negotiation /discount of the bill will be charged at the time of negotiation/ discount. The Advance must be repaid in full from the proceeds realized from the export bill

If the bill negotiated / discounted does not get realized or paid in time, the exporter has to repay the loan from its own sources at the maturity of the Loan or Advance. Other terms and conditions will be as decided by the bank from time to time.

For more details, please contact to our nearest branch


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