Pre-shipment credit also known as ‘Packing credit’ is loan/ advance granted by Bank to an exporter for financing the purchase, processing, manufacturing and/or packing of goods prior to shipment. Packing credit can also be extended as working capital assistance to meet expenses such as wages, utility payments, travel expenses etc; to companies engaged in export or services.

Requirements

• Exporter should have a 10 digit importer-exporter code number allotted by DGFT

• Exporter should not be in the caution list of RBI

• License/Quota Permit if goods are not freely exportable

• Facilities for exporter as also support manufacturer

• Additional facility for Gold Card holders

Types of Pre-shipment Finance:

• Packing Credit in India Rupee

• Packing credit in Foreign currency (PCFC)

• Advances against receivables from government, like duty drawback

• Advance against Cheques / drafts etc; representing Advance payment