Export Credit: Pre‑Shipment, PCFC, Post‑Shipment & Receivables

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. [1][11]

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. [5][8][7]

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. [3][15]