Packing credit is a loan/ cash credit facility sanctioned to an exporter in the Pre-Shipment stage.

  1. Packing credit is a loan/ cash credit facility sanctioned to an exporter in the Pre-Shipment stage. This loan facilitates the exporter to purchase raw materials at competitive rates and manufacture or produce goods according to the requirement of the buyer and organize to have it packed for onward export.
  2. The lending institutions seek a Letter of Credit opened in favour of the exporter from the overseas buyer along with the irrevocable (cannot be canceled once drawn) Purchase Order favouring the exporter. Packing Credit facility will cover all the working capital needs of the exporter including raw materials, wages, packing costs and all pre-shipment costs.
  3. Packing credit is available for generally a period of 90 days and the exporter has to pay lower rate of interest compared to traditional Overdraft or Cash Credit facility.

Exporters use this facility so they can bid the most competitive price for export thus gaining more business opportunities for export.

The borrower and/or the guarantors have to provide the following documents to the banks or the lending institutions while submitting Overdraft against Gold Application. Certain documents may be demanded by the bank or the lending institutions in post sanction phase or on periodical basis.

  1. Address Proof : Latest Electricity/Telephone Bill or Receipt of Maintenance Charges or Valid Passport or Voter?s Identity Card or Purchase/Lease Deed/ Leave & License Agreement of Residence or Office Premises.
  2. Identity Proof : Valid Passport, PAN Card, Voter?s Card, Any other photo identification issued by Government Agencies.
  3. Business Proof : VAT/CST Registration No. or MIDC Agreement or SSI Permanent Registration Certificate or Warehouse Receipts or Shop & Establishment Act Certificate or Copy of Lease Agreement along with the latest Rent paid Receipt.
  4. Business Profile on Company?s Letterhead.
  5. Partnership deed in case of partnership firms.
  6. Certificate of incorporation, Date of Commencement of Business and Memorandum of Title Deeds, Form 32 in for Addition or Deletion of Directors in case of companies.
  7. Last three years Trading, Profit & Loss A/c. and Balance Sheets (duly signed by a Chartered Accountant wherever applicable).
  8. Last one years? Bank statement of the Firm.
  9. If existing loan, then sanctioning letter and repayment schedule of the same.
  10. Firm/Company?s PAN Cards.
  11. Individual Income Tax Returns of the Individual/Partners/Directors for last three years.
  12. Last one years? Bank statement of Individuals, Partners, Directors.
  13. SEBI formalities in case of listed companies.
  14. Share Holding pattern of Directors duly certified by a Chartered Accountant.
  15. List of the Existing Directors of the company from the Registrar of the Companies.
  16. Written & approved confirmation of having No Legal Suit filed against any of the directors. If any such legal suit or proceedings are pending then the details of such legal suit or proceeding.

Under Construction

  1. An exporter who has an import-export code number (IEC)
  2. He should not be in the caution list of ECGC.
  3. Should have a letter of credit opened in his favor or a confirmed and irrevocable order for export of goods.
  4. Packing Credit Loan can also be allowed to the supporting manufacturer supplier of the goods who do not have export orders or LC in their name.