A Revolving Export Credit Facility is an advance extended to exporters upon presentation of acceptable export documents, except a bill of lading. The facility should be advanced against valid export documents.
The Customer Relationship Manager/Customer Relationship Officer/Branch Manager has to make sure that the exporter has not been provided with a Pre-Shipment Export Credit Facility.
The Revolving Export Credit Facility loan amount to be advanced to the customer is up to a maximum of 90% depending on the financial strength and track record of the customer.
The facility shall be availed for one year but can be renewed every year unless the Bank demands it to be reviewed by the credit approving team for any remedial action when the performance of the account is deteriorating.
In order to advance the facility, the customer should submit the following export documents, indicating the shipment of goods to the port:
- Irrevocable Letter of Credit;
- Waybills such as truck way, railway;
- Insurance contract;
- Certificate of cleanliness (quality certificate) from appropriate organ; and
- Other documents as specified in the Letter of Credit.
The documents must confirm that the goods are in transit for shipment.
The Customer Relationship Officer/Branch Manager shall assist the Customer Relationship Manager in ensuring the timely settlement of each advance made to the customer.
Eligibility
A Revolving Export Credit Facility can be approved only for exporters with a clean track record in the export business.
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