Pre Shipment Credit

Pre-Shipment Credit in Foreign Currency 

‘Pre-shipment’ means any loan or advance granted or any  other credit provided by a bank to an exporter for financing  the purchase, processing, manufacturing or packing of goods prior to shipment, on the basis of letter of credit opened in his favour or in favour of some other person, by an overseas buyer or a confirmed and irrevocable order for the export of goods from India or any other evidence of an order for export from India having been placed on the exporter or some other person, unless lodgement of export orders or letter of credit with the bank has been waived. With a view to making credit available to exporters at internationally competitive rates, authorised dealers have been permitted to extend Pre-shipment Credit in Foreign
Currency (PCFC) to exporters for domestic and imported inputs of exported goods at LIBOR / EURO LIBOR /

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