Interest Rates on Export Credit

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Interest Rates on Export Credit

(Per cent per annum)

Export Credit

Rates Effective

January 01, 1998

April 30, 1998

August 06, 1998

April 01, 1999

October 29, 1999

May 26, 2000

January 06, 2001

May 05, 2001#

Septem
ber 26, 2001#

May 18, 2004 #

May 01, 2006 #

Nov. 2008 #

Pre-shipment Credit*

Up to 180 days

12.00

11.00

9.00

10.00

< PLR-1.5 PP

< PLR-2.5 PP

< BPLR-2.5 PP

ii)

Beyond 180 days and up to 270 days

14.00

12.00

13.00

< PLR+1.5 PP

< PLR+0.5 PP

Free

< BPLR-2.5 PP **

iii)

Against incentives receivable
from Government covered by ECGC
Guarantee up to 90 days

12.00

11.00

9.00

10.00

< PLR-1.5 PP

< PLR-2.5 PP

< BPLR-2.5 PP

Post-shipment Credit*

Demand Bills for transit period (as specified by FEDAI)

< 11.00

9.00

< 10.00

< PLR-1.5 PP

< PLR-2.5 PP

< BPLR-2.5 PP

ii)

Usance Bills
(for total period comprising usance period of export bills, transit period as specified by FEDAI and grace period wherever applicable)

Up to 90 days

< 11.00

9.00

< 10.00

< PLR-1.5 PP

< PLR-2.5 PP

< BPLR-2.5 PP

Beyond 90 days and up to six months from the date of shipment

13.00

11.00

12.00

< PLR+1.5 PP

< PLR+0.5 PP

Free

< BPLR-2.5 PP **

Beyond six months from the date of shipment

20.00 $
(Min.)

Upto 365 days for exporters nder the Gold Card Scheme

< BPLR-2.5 PP

iii)

Against incentives receivable from Government covered by ECGC Guarantee (up to 90 days)

< 11.00

9.00

< 10.00

< PLR-1.5 PP

< PLR-2.5 PP

< BPLR-2.5 PP

iv)

Against undrawn balance (up to 90 days)

< 11.00

9.00

< 10.00

< PLR-1.5 PP

< PLR-2.5 PP

< BPLR-2.5 PP

Against retention money (for supplies portion only) payable within one year from the date of shipment (up to 90 days)

<11.00

9.00

< 10.00

< PLR-1.5 PP

< PLR-2.5 PP

< BPLR-2.5 PP

Deferred Credit

Deferred credit for the period
beyond 180 days

Free
(FDA)

Free

Export Credit, not otherwise specified

Pre-shipment credit

Free

Post-shipment credit

20.00

Free

25.00

Free

(Min.)

FDA : From the date of advance. Min. : Minimum. PLR : Prime Lending Rate. BPLR : Benchmark Prime Lending Rate.
< : Not Exceeding. — : Not Applicable. PP : Percentage Points.

$    : Chronic cases, i.e., overdues as on July 1, 1997 are exempted.
#    : These are ceiling rates, banks would be free to charge any rate below the ceiling rate.
*    : Interest rates for the above-mentioned categories beyond the tenors as prescribed above are free effective May 1, 2006.
@ : Banks are free to set own interest rates.
**     : Rate of interest for packing credit effective from Nov 15, 2008 and for post-shipment credit effective from Nov 28, 2008

Note :
1. ‘Free’ means banks are free to charge interest rates keeping in view the BPLR and spread guidelines.

2. The Government of India introduced interest rate subvention of 2 / 4 percentage points with effect from April 1, 2007 till Sepember 30, 2008, on pre- and post- shipment rupee export credit, for certain employment oriented export sectors as under:
(i) textiles (including Handloom); (ii) readymade (iii) leather (iv) handicrafts; (v) engineering; (vi) processed agriculture; (vii) marine; (viii) sports (ix) toys, and (x) solvent extracted de oiled cake (xi) Plastics and linoleum (xii) Small & Medium enterprises. Under this dispensation, banks were allowed to charge interest rates not exceeding BPLR minus 4.5 / 6.5 percentage points on pre-shipment credit upto 180 days and post-shipment credit up to 90 days on the outstanding amount for the period July 1, 2007 to September 30, 2008 to the above-mentioned sectors. However, the total subvention will be subject to the condition that the interest rate, after subvention, will not fall below 7 per cent which is the rate applicable to the agriculture sector under priority sector lending. This scheme was brought to a close on September 30, 2008

3. The Government of India introduced a fresh scheme of interest rate subvention of 2 percentage points with effect from December 1, 2008 till March 31, 2009 on pre- and post- shipment rupee export credit, for certain employment oriented export
sectors as under: (i) textiles (including Handloom); (ii) handicrafts; (iii) carpets; (iv) leather; (v) gems and jewellery; (vi) marine products, and (vii) small & medium enterprises. Under this dispensation, banks were allowed to charge interest rates not exceeding BPLR minus 4.5 percentage points on pre-shipment credit up to 270 days and post-shipment credit up to 180 days on the outstanding amount for the period December 1, 2008 to March 31, 2009 to the above-mentioned sectors. However, the total subvention will be subject to the condition that the interest rate, after subvention, will not fall below 7 per cent which is the rate applicable to the agriculture sector under priority sector lending.

4. The Government of India, has further extended the interest rate subvention from April 1, 2009 up to March 31, 2010.