Scheme of cheap credit for exporters extended
Rupee-hit exporters will continue to get bank credit at concessional rates for pre-shipment and post-shipment till October 31, 2008.
By PTI |
NEW DELHI:Rupee-hit exporters will continue to get bank credit at concessional rates for pre-shipment and post-shipment till October 31, 2008.
Loans would be available at 2.5 per cent below the Benchmark Prime Lending Rate for 90 days in case of post-shipment and 180 days in case of pre-shipment.
The decision was announced by the RBI in a notification today. The scheme of concessional rate of interest was to expire on April 30 this year.
Banks are free to give discount below this stipulated limit, the notification stated.
Pre-shipment credit is provided as loan or advance by a bank to an exporter for financing the purchase, processing, manufacturing or packaging of goods prior to shipment. Post-shipment finance is given after the date of shipment of goods and up to the date of realisation of export proceeds.
Loans would be available at 2.5 per cent below the Benchmark Prime Lending Rate for 90 days in case of post-shipment and 180 days in case of pre-shipment.
The decision was announced by the RBI in a notification today. The scheme of concessional rate of interest was to expire on April 30 this year.
Banks are free to give discount below this stipulated limit, the notification stated.
Pre-shipment credit is provided as loan or advance by a bank to an exporter for financing the purchase, processing, manufacturing or packaging of goods prior to shipment. Post-shipment finance is given after the date of shipment of goods and up to the date of realisation of export proceeds.
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