Title Pre shipment Credit – Packing Credit
Objective

Extending timely finance to exporter is a national priority.
Purpose

The finance is extended prior to shipment, for purchase / processing / manufacturing / packing of goods on the basis of LC or an order for export from India

Eligibility Exporters who have export orders or a Letter of Credit established by the overseas buyer in their favour. suppliers or supporting manufacturers who do not have export order / LC in their own name and are exporting through merchant exporters or Star Exporters who are the Export Order Holders ( EOH ) subject to conditions
Nature of Advance Pre-shipment finance is a working capital finance (mainly inventory finance) extended to exporters at pre-shipment stage enabling them to procure / process / produce / manufacture / pack the goods meant for export.
Currency of Advance Pre-shipment credit may be extended either in Indian Rupees (PC) or in designated currencies (PCFC) (as per guidelines) at the option of the exporter.
Quantum of Advance Need based
Period of Advance
  • Packing Credit is basically a short term finance. The period for which PCs should be granted depends upon shipping schedule, production cycle etc. Concessional Rate of Interest is available for a period of 180 days.
  • The period of a PC will generally begin with the procurement of raw materials for execution of a particular LC / Order and the credit gets liquidated once the goods are shipped and shipping documents are presented to the Bank.
Rate of Interest At concessional interest rates as per Reserve Bank of India directives, which are subject to modifications.

Conditions apply. The information provided above is only illustrative and not exhaustive.

Contact: For more details, please contact your nearest: Canara Bank Branch or E-mail to: hosbu@canarabank.com