Export Credit Refinancing (ECR) Scheme provides short-term pre and post shipment financing to direct/indirect exporters. It is available to a manufacturer or trading company with ECR credit line duly established with commercial bank.
A Pre Shipment ECR facility facilitates purchases of materials and overhead expenses while Post Shipment ECR provides financing to direct exporter upon shipment.
Terms and Conditions
PRE-SHIPMENT ECR
POST-SHIPMENT ECR
Method of Financing
Order-Based
Financing is against the export order received from overseas buyer or direct exporter.
Certificate of Performance (CP)
Financing is against certificate of performance (CP) issued by EXIM Bank
Bill Discounting Financing against export documents
Margin of Financing
Up to a maximum of 95% of value of export order or ECR Domestic Letter of Credit / ECR Domestic Purchase order / local purchase order
Financing is against certificate of performance (CP) issued by EXIM Bank
Up to a maximum of 100% of export bill value. Subject to availability of ECR credit limit with the commercial bank and EXIM Bank’s administrative limit.
Subject to ECR credit limit with the commercial bank and EXIM Bank’s administrative limit
Tenor
Up to a maximum of 4 months.
Fixed for 4 months.
Up to a maximum of 6 months.
Interest Rate
Currently 3.30%, subject to change
Repayment
Upon receipt of: -
Direct Exporter
export proceeds; or
post shipment proceeds
Indirect Exporter
proceeds from direct exporter.
Upon: -
receipt of export proceeds; or
maturity of the post-shipment bill whichever is earlier.
Note: The terms and conditions stated above are subject to review from time to time.
Access to the ECR facilities
Eligibility for ECR Scheme
Eligible Exporter
Access to ECR Facilities
Direct Exporter: -
manufacturing company
agricultural products producer
trading company
Access to ECR Facilities is subject to the availability of ECR credit line extended by ECR bank
