Packing Credit
Packing Credit
A loan or advance given to an exporter to finance the purchase, processing, manufacturing, or packaging of products prior to shipment is known as a “re-shipment” or “packing credit.” To businesses involved in export or service provision, packing credit can also be offered as working capital support to cover costs such as salaries, utility bills, travel expenditures, etc. A confirmed and irrevocable order for the export of products or services from India, a letter of credit, or any other proof of an order for export from India is used to authorize or issue a packing credit.
Bank Account
An exporter who has received a confirmed export order from a buyer or an irrevocable Letter of Credit (LC) can apply for a packing credit loan from any registered bank in the country.
Documents Needed
KYC
- Loan Application form
- KYC (applicant & co-applicant)
Income Proof
- Income Documents
Our Benefits
- The self-liquidating features are the essential feature of the packing credit. The loan could be liquidated against the final payment of the services and goods or converted to post-shipment finance after the shipment of the goods. This is useful to small exporters who may not have the required capital.