Bizolot

Packing Credit Loan

Enabling seamless international trade and sustained growth.

Get personalised quotes

Export Packing Credit on Bizolot

At Bizolot, we empower exporters by offering insights into essential financial tools like Export Packing Credit (EPC). EPC is a short-term credit facility provided by banks or financial institutions to exporters to meet their pre-shipment and post-shipment financial needs. This facility ensures that exporters can fulfill their export orders without facing financial constraints, making it a vital enabler of global trade.

Features of Export Packing Credit

1

Short-Term Credit:

EPC is typically granted for up to 180 days or based on the exporter's requirements.

2

DFlexible Repayment Options:

Exporters can repay the loan in installments tailored to their needs.

3

Competitive Interest Rates:

EPC loans are offered at lower interest rates compared to regular business loans.

4

No Collateral Required:

These are unsecured loans, meaning no collateral or security is necessary.

5

Post-Shipment Finance:

EPC also covers post-shipment financial needs, helping exporters manage receivables effectively.

Eligibility Criteria

To qualify for export packing credit, exporters must meet the following criteria:

✔Hold a valid export order.

✔Be a registered exporter with a good credit history.

✔Provide all necessary export documentation.

Interest Rates and Fees

✔Interest rates for EPC are generally lower than other commercial credit options but vary across banks.

✔A processing fee may also apply, depending on the loan amount.

Required Documentation

Exporters need to submit:

✔ eExport order and purchase order.

✔Invoice and packing list.

✔Shipping bill and bill of lading.

✔Insurance cover note.

✔Other documents specified by the bank

Repayment Process

EPC is a short-term facility, with repayment typically required within 180 days. Flexible repayment schedules can be customized to align with the exporter's cash flow.

Packing Credit vs. Letter of Credit

1

Purpose:

  1. Packing Credit: Pre-shipment finance for production and shipping.
  2. Letter of Credit: Bank's guarantee of payment upon shipment and document submission.
2

Role:

  1. Packing Credit: Provides working capital for exporting goods.
  2. Letter of Credit: Secures payments for both importers and exporters.

How to Apply for Export Packing Credit

Exporters can apply for EPC through authorized banks or financial institutions by following these steps:

  1. Submit a detailed project report.
  2. Provide necessary documents (e.g., export orders, invoices, packing lists).
  3. Undergo creditworthiness evaluation.
  4. Receive a credit limit based on eligibility.

Benefits of Export Packing Credit

1

Supports Working Capital Needs:

Enables exporters to manage production and shipping expenses efficiently.

2

Encourages International Trade:

Timely funding helps exporters compete in the global market.

3

Low-Cost Financing:

EPC loans offer competitive interest rates, making them an affordable option.

4

Flexibility:

Loan repayment schedules and funding options can be customized to suit business needs.

5

No Collateral Risk:

As unsecured loans, exporters face no collateral-related obligations.

FAQs About Export Packing Credit

What is the primary purpose of Export Packing Credit?

EPC provides exporters with working capital to cover pre-shipment and post-shipment expenses.

Who is eligible for Export Packing Credit?

Exporters with valid export orders, registration, good credit history, and necessary documentation are eligible.

What is the typical duration of an EPC loan?

The duration is generally up to 180 days, with flexibility based on the exporter's needs.

How does EPC differ from a Letter of Credit?

EPC finances the production and shipping process, while a Letter of Credit guarantees payment upon shipment.

Can I apply for EPC without collateral?

Yes, EPC is an unsecured loan and does not require collateral.

Export Packing Credit is an indispensable tool for exporters aiming to scale globally. Bizolot helps businesses understand and utilize this facility effectively, enabling seamless international trade and sustained growth.