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Export Finance

The document outlines export finance options available to exporters, categorized into two types: Rupee Route and Foreign Currency Route. It details pre-shipment and post-shipment financing mechanisms, including Export Packing Credit (EPC) and Export Bill Finance (FDBL) for Rupee Route, and Packing Credit in Foreign Currency (PCFC) and Export Bill Rediscounting (EBR) for Foreign Currency Route. Each financing type includes specifics on interest rates, security requirements, and repayment structures.

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20 views6 pages

Export Finance

The document outlines export finance options available to exporters, categorized into two types: Rupee Route and Foreign Currency Route. It details pre-shipment and post-shipment financing mechanisms, including Export Packing Credit (EPC) and Export Bill Finance (FDBL) for Rupee Route, and Packing Credit in Foreign Currency (PCFC) and Export Bill Rediscounting (EBR) for Foreign Currency Route. Each financing type includes specifics on interest rates, security requirements, and repayment structures.

Uploaded by

kavi70501
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd

EXPORT FINANCE

-BY [Link]
DY MANAGER (RETD), SBI

1
CONTINUED 07/30/25
MEANING AND TYPES
 FINANCIAL FACILITIES AVAILABLE
FROM A BANKER TO AN EXPORTER
 TYPE-I – RUPEE ROUTE
 PRE-SHIPMENT FINANCE-EPC
 POST SHIPMENT FINANCE-FDBL
 TYPE-II-FOREIGN CURRENCY
ROUTE
 PRE-SHIPMENT FINANCE-PCFC
 POST SHIPMENT FINANCE-EBR

2
CONTINUED 07/30/25
oTYPE ONE- RUPEE ROUTE
PRE-SHIPMENT FINANCE – EPC
o EXPORT PACKING CREDIT IN INR
o AT CONCESSIONAL RATE OF
INTEREST
o NEED BASED FINANCE
o LIMIT FIXED
o SECURITY
 PRIMARY
 COLLATERAL
 INTANGIBLE
 ECGC COVER (IE PACKING CREDIT GUARANTEE)
o INTEREST RATE STRUCTURE
o LIEN ON EXPORT LC OR ORDER
o EXPORT CONTRACT REGISTER- DRAWING POWER
o DISBURSEMENT OF EPC
o ENSURING END USE OF FUNDS
o SELF LIQUIDATING LOAN
o RUNNING ACCOUNT FACILITY

3
CONTINUED 07/30/25
POST SHIPMENT FINANCE-
FDBL
 NOTHING BUT EXPORT BILL
FINANCE
 EXPORT BILL NEGOTIATED\
PURCHASED/DISCOUNTED UNDER
LC OR NON-LC
 THE BILL PROCEEDS LIQUIDATE
EPC(PRE-SHIPMENT FINANCE)
 TYPES OF BILLS
 SIGHT AND
 USANCE
 DEFERRED PAYMENT TERMS
 INTEREST RATE STRUCTURE
 TRANSIT PERIOD AS PER FEDAI RULES
 USANCE PERIOD
 OVERDUE INTEREST
 SECURITY
 PRIMARY
 COLLATERAL
 INTANGIBLE
 ECGC COVER-SHIPMENT (COMPREHENSIVE) POLICY PLUS
INDIVIDUAL BUYER’S LIMIT AND INDI POST-SHIPMENT GUARANTEE
 OVERDUE EXPORT BILL- XOS STATEMENT
 CRYSTALISATION OF OVERDUE EXP BILL
 RETURN OF UNPAID EXPORT BILL
 RETURNED UNPAID BILL SUBSEQUENTLY PAID

4
CONTINUED 07/30/25
TYPE TWO-FOREIGN
CURRENCY ROUTE
 PRE-SHIPMENT FINANCE-PCFC
 PACKING CREDIT IN FOREIGN
CURRENCY
 ANY TRADABLE/PERMITTED CURRENCY
 PCFC DRAWAL (DIRECT)-TO
MEET IMPORT PAYMENTS
 PCFC DRAWAL (CONVERSION)-
TO PURCHASE DOMESTIC RAW MATERIALS
 INTEREST RATE STRUCTURE- EARLIER 2 PERCENT
ABOVE SIX MONTHS ARR, NOW SPREAD IS FREED
 FUNDING-ON SHORE AND OFF-SHORE FUNDINGS
 SECURITY- PRIMARY, COLLATERAL,
INTANGIBLE AND ECGC COVER
 LIEN MARKING ON LC/ORDER
 RUNNING ACCOUNT FACILITY
 REPAYMENT OF PCFC- SELF LIQUIDATION
 EXPORT NOT MATERIALISING-REPAYMENT BY SPOT
SALE AT RULING TT SELLING RATE
5
CONTINUED 07/30/25
POST SHIPMENT FINANCE IN
FOREIGN CURRENCY ROUTE
 EBR SCHEME
ANY TRADABLE/PERMITTED CURRENCY
 NO CONVERSION AT POST SHIPMENT STAGE
 INTEREST RATE-EARLIER 2 PERCENT
ABOVE SIX MONTHS ARR,NOW SPREAD IS FREED
 DIRECT REPAYMENT OF PCFC
 CHARGES-PER BILL USD 25 PLUS USUAL
PROCESSING CHARGE
 EBR REDISCOUNTED AT APEX LEVEL WITH
FOREIGN BANKS UNDER BAF (BANKERS
ACCEPTANCE FACILITY)

6
CONTINUED 07/30/25

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