Export Pre-shipment Credit (Packing Credit Loan) (PCL)

Post shipment credit is a loan or advance granted or any other credit provided by the Bank for export of goods/services from India.


Types of post shipment credit
  • Export bills negotiated under letter of credit
  • Export bills purchased under confirmed orders/export contracts
  • Advances against export bills sent for collection etc.

Period of post shipment credit

For demand bills, the period of advance will be the Normal Transit period (as specified by FEDAI). In case of usance bills, the period of advance will be usance period of the bill plus Normal Transit period, if applicable and grace period, if any.

Security (primary)

Documents of title to goods exported.


Liquidation of Post shipment credits)

Post shipment credit should normally be liquidated by the proceeds of export bills received from abroad in respect of goods exported/services rendered.

The exporter has the option to avail pre shipment credit and post shipment credit either in rupee or in foreign currency. However if the pre shipment credit has been availed in foreign currency, the post shipment credit has also to be availed in foreign currency.


Rates & Charges

Rate of interest is subject to Reserve Bank of India directives. Please refer to the rates and charges tables (Take me there).


External Links

FEDAI – Foreign Exchange Dealers Association of India.