Export Post Shipment Credit
Need loan or advance for export of goods/services from India ? You can rest easy with Export Post Shipment Credit from Federal Bank
- Features & Benefits
- How to apply ?
- Documents Required
- Interest Rates
- Post shipment credit is a loan or advance granted or any other credit provided by the Bank for export of goods/services from India.
- For demand bills, the period of advance will be the Normal Transit period (as specified by FEDAI).
- For usance bills, the period of advance will be usance period of the bill plus Normal Transit period, if applicable and grace period, if any.
- Documents of title to goods exported will be treated as security.
- 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.
- Individuals, Firms, Companies or any other legal entity engaged in export of goods can avail this loan.
- To avail the loan, you can choose any of these:
- Export bills negotiated under letter of credit
- Export bills purchased under confirmed orders/export contracts
- Advances against export bills sent for collection etc.
- Rate of interest is subject to Reserve Bank of India directives. Please refer to the Interest Rates page