RBI • ECGC • DGFT
Export Credit: Pre‑Shipment, PCFC, Post‑Shipment & Receivables
Access concessional pre/post‑shipment credit in INR/FX, mitigate risks with ECGC, and accelerate cashflows via TReDS & incentives
Packing
Pre‑Shipment
Post‑Ship
Bills/Collections
PCFC
FX Credit
ECGC
Risk Cover
- Credit Types
- INR & PCFC (FX)
- Security
- Order/LC‑backed
- Risk Cover
- ECGC WTG for banks
- Receivables
- TReDS e‑discounting
- Incentives
- RoDTEP e‑scrips
- Subvention
- IES policy updates
01Overview
About Export Finance
Export credit supports the production and shipment of goods/services to overseas buyers through pre‑shipment Packing Credit (INR/PCFC) and post‑shipment finance against bills until realization or acceptance, with specific RBI rules on eligibility, tenor, and liquidation. PCFC offers foreign currency credit to align borrowing costs with export receivables.
Banks mitigate post‑shipment default risk using ECGC’s Whole Turnover Guarantees, while exporters can improve netbacks through incentives like RoDTEP e‑scrips and speed up receivables via RBI‑regulated TReDS platforms for MSME supplier invoices on large buyers.
The Interest Equalisation Scheme (IES) for rupee export credit has seen periodic extensions and revisions; exporters should check the latest applicability and rates with their bank and trade notices to optimize borrowing cost.
- 01
Pre‑Shipment (Packing)
Finance to procure/process/pack against firm orders/LCs; liquidation on submission of export bills; running account facility permitted per RBI.
- 02
Post‑Shipment
Discounting/negotiation of sight/usance bills or purchase of documents until payment/acceptance; concessional periods per RBI norms.
- 03
PCFC (FX Credit)
Pre‑shipment credit in designated foreign currencies with flexible hedging and forward cover; aligns with FX receivables.
- 04
ECGC & Incentives
ECGC WTG for banks, policy covers for exporters; RoDTEP e‑scrips to offset embedded duties; watch IES updates for interest support.
02Who can apply
Eligibility Criteria
Borrowers & Basis
3 points- Exporters with IEC and firm purchase orders/LCs for pre‑shipment credit.
- Post‑shipment against export bills (sight/usance) until realization.
- MSME sellers on TReDS for receivables discounting on large buyers.
Facilities & Tenor
3 points- Packing Credit (INR) and PCFC pre‑shipment; post‑shipment bills discounting/collection per RBI tenors.
- Extended realization periods possible for specific categories with approvals.
- RoDTEP claim at shipping bill; e‑scrip credit via ICEGATE on verification.
Risk & Support
3 points- ECGC Whole Turnover Guarantees to banks; exporter policies for buyer/country risks.
- IES status/rates per current trade notices; bank confirmation advised.
- TReDS auction‑based without recourse discounting for MSMEs on approved buyers.
03Paperwork
Required Documents
0 / 9 ready
Tick the documents you already have
Pre‑Shipment
Post‑Shipment
Receivables & Incentives
04Step by step
Application Process
- 01
Apply for Packing/PCFC
2–5 DaysSeek pre‑shipment INR or PCFC against order/LC; bank appraises cycle, currency, and risk mitigants.
Running account permitted; avail forward cover for FX risk.
- 02
Ship & Submit Bills
1–3 DaysOn shipment, submit export documents; bank negotiates/discounts bills and liquidates packing credit.
Concessional periods apply up to prescribed tenors.
- 03
Claim Incentives & Discount Receivables
ParallelDeclare RoDTEP at shipping bill and manage e‑scrips on ICEGATE; use TReDS for MSME invoices on large buyers.
TReDS typically without recourse to MSME sellers.
- 04
Risk Cover & Realization
As per tenorBanks may use ECGC WTG; exporters can take specific ECGC covers; adhere to realization timelines or seek permitted extensions.
Extensions subject to RBI/AD approvals.
05Why it's worth it
Key Benefits
Aligned Credit
INR and FX options (PCFC) match funding with receivables currency and cycle, reducing cost and risk.
- Lower carry
- FX alignment
- Faster cycles
Risk Mitigation
ECGC guarantees and policies protect banks/exporters; structured post‑shipment reduces default exposure.
- WTG
- Buyer/country cover
- Compliance
Policy Support
RoDTEP e‑scrips enhance margins; IES updates can lower rupee export credit cost for eligible segments.
- e‑scrips
- Lower rates
- Competitiveness
Digital Receivables
TReDS auctioning unlocks MSME cashflows with transparent, time‑bound, largely without‑recourse discounting.
- Multi‑bank bids
- Faster settlement
- Compliance
06Questions
Frequently Asked Questions
- Both are pre‑shipment finance; PCFC is in designated foreign currency, allowing lower FX-linked rates with hedging options aligned to export receivables.
- Banks discount/negotiate sight/usance bills or purchase documents until realization; proceeds liquidate packing credit and fund the exporter pending buyer payment.
- ECGC provides guarantees/policies against buyer and country risks; RoDTEP grants e‑scrips to offset embedded taxes, credited via ICEGATE for use/transfer.
- IES has seen periodic extensions and modifications; check latest bank/DGFT notices for current rates and eligibility to reduce rupee export credit cost.
- Yes, MSMEs can discount invoices to large buyers on RBI‑regulated TReDS platforms with auction‑based, largely without‑recourse financing.
Plan your EMI before you apply
See the monthly instalment, the real cost of interest and how the balance falls, year by year.
EMI Planner
Drag the sliders — everything updates live
Monthly EMI
₹32,241
Total interest
₹4.34 L
Total payable
₹19.34 L
Principal 78%
Interest 22%
Every ₹1 borrowed costs ₹1.29 in total.
What you pay each year
Illustrative only. Your actual rate depends on the lender, scheme and your credit profile.
Real outcomes
Success Stories
“PCFC reduced borrowing cost and aligned currency; faster realization with post‑shipment discounting.”
Arka TextilesApparel ExportsFunded: ₹1.6 Crore“ECGC cover enabled larger post‑shipment lines; RoDTEP e‑scrips improved margins on key SKUs.”
Zen PumpsCapital GoodsFunded: ₹3.2 Crore“TReDS discounting on PSU buyer invoices cut DSO to under 10 days and stabilized working capital.”
FreshAgro EximAgri ProductsFunded: ₹90 Lakhs
Export Finance
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