Lecture 37: Pre shipment export packing credit facility for exporters

RBI says: "No exporter or export order should suffer due to non-availability of funds".
Introducing the detailed understanding of Export packing credit facility for various exporters through this video. You will understand below:
1. Concept of export packing credit facility.
2. Detailed understanding of Pre-shipment packing credit finance.
3. Advantages and disadvantages of availing it in INR/Foreign currency and further order based/running based.
4. Pricing and Govt. benefits.
#Packingcredit #Preshipmentfinance #Exportpackingcredit

[@shreyanshsharma8055]

Ek ek cheez jo bariki se samjhaye wahi hai real teacher..... Thank you ...👌👌 Keep going

[@AnkushJain]

Thank you 😊

[@abhishekpoddar8942]

Thank you Ankush for helping the growing exporters. We highly appreciates your efforts

[@AnkushJain]

Thank you 😊

[@vikaskanuriya7155]

Great Sir, You have elaborated every terms deeply. Concept cleared, Thank You

[@AnkushJain]

Your welcome

[@shreyanshsharma8055]

Really very helpful video..... Thank you so much

[@AnkushJain]

Your welcome

[@shanky9019]

This is the first video on yourtube..Which give insight of all details..In aapect of banker..Plz keep the work on...

[@AnkushJain]

Thank you 👍

[@soninisha]

Sir First of all thank you so much .my concepts were not clear about EPC,due to non exposure.but in my current branch there are 4 EPC ,but nobody is able to clear the concept. Now onwards I will be able to do it myself Thanks a lot

[@AnkushJain]

Thank you 😊😊

[@prashunjha8918]

Very informative video sir and explain very well thankyou so much for this free videos.

[@AnkushJain]

Your welcome 👍

[@krishdesai1692]

Great video sir... Solved all doubts regarding export credit.. just love your channel it's a mini course to be a banker

[@AnkushJain]

Thank you

[@healthytadkawithtwist]

@@AnkushJain thank sir you have teach properly

[@AnkushJain]

👍

[@deeptidahiya4300]

Very clear n useful

[@AnkushJain]

Thank you

[@pravinsharma1857]

Great sir, you've just cleared my all doubts.

[@AnkushJain]

Glad to know that 😊

[@VikashYadav-iy9ym]

Thank you so much sir for videos All videos are very useful for me

[@AnkushJain]

Thank you

[@avinashverma5932]

Great Sir... Bahut achche se padhaye hai

[@AnkushJain]

Thank you

[@sanjayyadav-bv9ge]

Great Sir Very informative😊

[@AnkushJain]

Thank you

[@pardeepgarg6555]

Beautifully explained ❤

[@AnkushJain]

Thank you

[@pranjalmaurya6524]

Great lecture for credit manager and RM

[@AnkushJain]

Thank you

[@ShrawanKumar-wf5bh]

Great sir..... really needed this

[@AnkushJain]

Your welcome

[@secretsuperstar4213]

Bhot badiya Jain Saab!!

[@AnkushJain]

Thank you 👍

[@Salmanyshaikh12]

Very valuable informations thanks 🙏

[@AnkushJain]

Thank you

[@dhavalsoni-w7r]

Very useful information.. Thanks

[@AnkushJain]

Your welcome

[@ShaistaSam]

Very good effort .keep it up

[@AnkushJain]

Thank you

[@ShaistaSam]

@@AnkushJain i am banker and from Pakistan sir and working in export department .Although u talk about credit but i daily pratice all these in my trade and finance depart. Your lectures are really blessing and helpful for me in deep understanding.i would like that u cover other areas of international trade also,esp elaborate UCP 600 and URC540 step wise.

[@AnkushJain]

Thank you 👍

[@ShaistaSam]

@@AnkushJain thanks for acknowldge .

[@MADHURIKUMARI-h2d]

Very Very conceptual

[@AnkushJain]

Thank you

[@TheSuresh2022]

Very very informative.. great going sir🙂🙂👍

[@AnkushJain]

Thank you

[@AnkushJain]

@@TheSuresh2022 why? That will be too quick I guess.

[@TheSuresh2022]

Sir, I have some query.. 1.can a firm takes WC limits from different bank with multiple banking?? I mean CC limit from HDFC bank and OD limit from ICICI Bank.. 2. Can a business take 2 cc or two OD limit from different bank.. Eg. 10cr CC from Axis Bank and 5cr CC from Kotak Bank? Is it possible.. Sir plz reply..

[@AnkushJain]

@@TheSuresh2022 they can. But it is banks discretion.

[@ankurkhare4983]

Greatly insightful

[@AnkushJain]

Thank you

[@rakeshsharma5905]

THANK U SIR, YOU ARE TOP OF THE WORLD, MANY MANY THANK SUCH A WODERFUL INFORMATION

[@AnkushJain]

Thank you Rakesh

[@krishankamra4249]

Very well explained. Thanks so much sir

[@AnkushJain]

Your welcome 👍

[@shilpijain4796]

Super Properly Explained

[@AnkushJain]

Thank you

[@arvindsharma6752]

Thanks for valuable information shared with us

[@AnkushJain]

Your welcome

[@krsantosh02]

Great..Liked

[@AnkushJain]

Thank you

[@lucky35673]

Very well explained Sirji😊

[@AnkushJain]

Thank you Bhai ☺️

[@damanaggarwal951]

Hii very informative video! Have a few questions 1. How is the interest served in PCFC, in USD or INR? 2.And when is it served, at repayment or at the time of disbursement 3. Will customer again have to convert USD to INR to serve interest

[@JP-ts7kk]

Very useful one

[@AnkushJain]

Thank you

[@nitingahlot6252]

Very well explained.

[@AnkushJain]

Thank you

[@vjayapandey9124]

Very well explained Sir..

[@AnkushJain]

Thank you

[@Shillpijain]

Awesome

[@AnkushJain]

@@Shillpijain thank you

[@mohitpandey7916]

Very informative video.. Please elaborate how to do Calculation of PC limit.. Is there any difference between the regular limit calculation and order based limit calculation?.. Thank you..

[@AnkushJain]

Thank you. There is separate video available on calculation of PC limit

[@sheetaljain9448]

Great sir

[@AnkushJain]

Thank you sheetal

[@swatigupta7202]

Thank u so much sir for deep understanding

[@AnkushJain]

Thank you

[@sarikamishra7494]

Thanks. Need to know how Interest subvention works. If full pre payment comes then how principle and interest to be adjusted in pre shipment finance. Tell us with ROI, when to debit, when to credit, Is any reversal happen in case of prepayment. Which kind of accounting entries affected in banking. Any contra/contingent entry to be made at the time of disbursement and if yes, when it will be reversed.

[@AnkushJain]

Ok

[@swetabhaditya7389]

VERY NICE PRESENTATION

[@AnkushJain]

Thank you

[@VijayYadav-ib6fh]

Nice sir

[@AnkushJain]

Thank you

[@neeruda1980]

A bow to you for guiding on such topics. A big thanks to you. Subscribed !!

[@AnkushJain]

👍

[@manishsoni9355]

Very helpful

[@AnkushJain]

Thank you

[@malaypangtey]

Thankyou sir 😊

[@AnkushJain]

Your welcome

[@manishsoni9355]

Nice lecture

[@AnkushJain]

Thank you

[@sarika9333]

Sir aapne explain kia hai ki pcfc me jo credit milta h woh ek tarike se stock k liye hota hai aur currency risk ko mitigate krta hai aur foreign currency ko knock off krne k liye easy hai. Lekin yeh credit ko toh INR me convert krke manufacturing ke liye india me use krna padega fir isse knock off kaise kia jayega??

[@AnkushJain]

Jab foreign se payment aayegi foreign currency mein to Jo pcfc account hai vo foreign currency mein hoga to foreign currency to foreign currency knock off ho jayega

[@rabiyabegum216]

Hi sir ….i bit confused. You said pre-shipment finance is made by a bank to exporter to manufacture the good and to dispatch. Once dispatch ( BOL is generated ) is happened then exporter has to do the repayment to the bank. So, how do exporter will repay? If exporter doesn't pay then the bill will be overdue. Because to get the funds from importer side it will gonna take time ( DA bill ). Please explain I will be very grateful to you! 😊

[@AnkushJain]

The pre shipment is to be converted to post shipment on export of goods

[@rabiyabegum216]

Oh …Thank you so much sir .. Sir.. do you take CDCS classes .. please let me now and how can I reach you for more info on CDCS.

[@ektamadhudiya6365]

Thank you sir for this lecture, but I have one query, that in pre shipment facility we are assessing loan for stock only and upto the date of bill of lading than how..order base tracking is possible because we receive payment after shipping and credit period given.

[@AnkushJain]

Couldn't get your query

[@Rakeshthakur-pl9si]

Thank u so much sir

[@AnkushJain]

Your welcome

[@nsd1001]

Hi sir gr8 lecture as usual. Few doubts - 1.For packing credit (pre or post), when client comes to us bankers & asks us for facility, should the sanction amount we give be against only one export order or multiple? if multiple, how will we calculate the sanction amount? 2. Since the primary risk seems to be importer defaulting on payment to exporter, shouldn't we as credit analyst spend more time assessing credit worthiness of clients customer like company name, financials, CIBIL etc.? Thanks sir.

[@AnkushJain]

For point 1, i have made separate video on eligibility calculator of export finance. For point 2, we usually receive d & b report of foreign customers to check their health

[@nsd1001]

@@AnkushJain thank you so much

[@AnkushJain]

👍

[@rajeevranjan4585]

A

[@AnkushJain]

Any query?

[@jyothimanjunath1953]

Sir, thank you for details Please do video on pcfc knock off on inward remittance

[@AnkushJain]

👍👍

[@Yadav-f7f]

Hi Sir, If there is such facility as discussed in video is available then why clients ask CC limits for thier export business. Have one client where they export their goods to USA market but they have taken only CC limits from the banks under multiple banking arrangements. Pls help me understand what is the benefit for client to avail CC limit than pre/post export credit facility or they are misguided?

[@AnkushJain]

Can be a case of misguidance or a case where client want to escape the monitoring mechanism of EPC limit and thus preferring cc limit

[@ArunVignesh-x6w]

Subtitles are missing. But wonderful lectures.

[@AnkushJain]

Thank you

[@wilsonloy9818]

As of 30.06.2023, my CC limit is 100, and the stock statement indicates stocks worth 133 (75% + 25% of the CC limit), resulting in a CC drawing power (DP) of 100. I have availed 25 from the PC limit, which has been transferred to my CC account. However, due to unexpected certification delays, I have not utilized this amount for purchasing stock by the end of the month. As of 30.06.2023, my CC utilization stands at 90, leaving a balance of 35 (100 - 90 + 25). I understand that my CC DP is currently calculated as 100, but I have a concern regarding the unutilized balance of 25 from the PC limit. Would the bank consider this unutilized PC amount to increase my CC DP? If no, since I have not utilized the funds and bank has not considered the same in calculating DP, Can I request the bank to close my PC disbursement??

[@AnkushJain]

Very tricky situation but bank won't consider this. You must put request first to the bank for closure of pc immediately. As and when you get the DP and debtors payment, pl close this packing credit. Just for your info, packing credit utilisation should be deducted from dp calculation always. Further i suggest you to speak with the bank and see if they can credit the pc drawdown in the current account instead of cc account for future transactions

[@wilsonloy9818]

@@AnkushJain whether submitting stock statement is mandatory for PC??

[@AnkushJain]

No. Rest it depends on internal policy of the bank. I don't take stock statement in pc cases

[@MADHURIKUMARI-h2d]

👌

[@AnkushJain]

Thank you

[@ashishbhargava9333]

Buyers credit aur FCDL mein sirf yeah antar samajh aaya ki Buyer’s credit mein Libor + 250bps ki RBI nay capping Kari hui hai aur dusri taraf FCDL jo ki Bank ka apna product hai usmein Bank capping say jyada bhi charge kar sakta hai. Phir client FCDL kyu lega wo yo Buyers credit ko hi avail karna chahega. Please advice ya kuch sir bhi FCDL mein client ko fayda hai.

[@AnkushJain]

Koi as such nhi hai.. fcdl usually bahut rare banks mein available hai as product and some banks even don't use fcdl for making payment to supplier in foreign country which we can do easily from buyers credit

[@VikramSingh-jn2xl]

Can exporter avail a single preshipment order based disbursment having different purchase order with different buyer name ?

[@AnkushJain]

Yes

[@johnnysolanki]

If Interest is debited in CA, can we consider the EPC Disbursement credit as interest servicing ???

[@AnkushJain]

System will consider but for our purpose we should not consider as it is loan disbursement only

[@avinvashisht5979]

Sir could you please clarify on labor and SOFR rate. I mean key differences. This rate is used in foreign credit facilities..

[@AnkushJain]

Pl watch this kzbin.info/www/bejne/hX62Y5KHqphkpK8

[@khanfazlurrahmanrabbani7606]

Sir please publish a Book in which all these topics are covered even should be purchased

[@AnkushJain]

Will try

[@khanfazlurrahmanrabbani7606]

@@AnkushJain Yes Sir I am addicted to your lectures

[@AnkushJain]

Thank you

[@mihirzatakiya124]

Hi Sir, 1.Can client use PCFC limit to make payment for importing raw material from foreign country? 2.In running limit based facility, it is necessary to check whether timely knock off happening or not , say 90 days period so , if one disbursement done on particular date then from that date to 90 days , credit from importer or self / internal payment has to be made in this account? 3. In Order based limit, it is based on logics thag advance payment from importer before shipment right? 4. In order Based limit , what if some how order gets cancelled , then how customer will repay loan as banks want payment from his party only?

[@AnkushJain]

1. Yes 2. Not possible in running limit since order based tracking not done. You have to rely on cibil and check banking for overdue or penal charges.

[@AnkushJain]

3. Could not understand your 3rd question. Please elaborate 4. Customer has to knock off either from own sources or we can knock off from client od/cc limit and charge penal and commercial rate from the date of original disb. Of that pcfc

[@mihirzatakiya124]

Thank you sir for clearing doubts. My 3rd question was that Order based limit is based on logic of receiving advance payment from importer before shipment of goods ?

[@AnkushJain]

No such presumption

[@miteshghervada8263]

Superb… Pls share the link for post shipment credit facilities

[@AnkushJain]

Thank you

[@archanakumari8421]

Thank u sir. U have cleared most of my doubt. can u cover the software used in banks with field details

[@AnkushJain]

Thank you Archana. Softwares are internal information of banks and it can not be shared on social platforms

[@soumyaroy808]

Sir how is pre-shipment finance assessed as it is difficult to distinguish the inventory as inventory for domestic sales and inventory for export sales. In such a situation how is the sanctioned limit arrived at ?

[@AnkushJain]

Just focus on export sales and apply export cycle over the sales and calculate accordingly

[@soumyaroy808]

@@AnkushJain Ok Sir

[@VIKASHKUMAR-ch4fn]

Sir In Order Based Facility you have mentioned that Bank only want Payment from the party for which PCFC has been issued. But facility is Pre-shipment and Payment from the buyer will be done post receiving of products. Suppose client need 90 from manufacturing to generation of BOL so bank will sanction the facility for 90 days itself. But in actual payment from the buyer will be post receiving of shipment and clearance of all docs which may additionally takes 15-20 days. So in this pre shipment facility how could bank demand that payment should be from that particular buyers. This is the 90 days facility and person who has availed this will make the payment to bank. Plz clear

[@AnkushJain]

Hi this is done to check the clear end use. Since if this is not followed then clients will provide fake export orders of other parties whom they are not exporting and keep on availing packing credit. If that is so then it may also happen that packing credit is taken in USD for export orders of America but actually client did export to Europe and received payment in euros. Each export order is properly mentioned in export docs made by seller so that it can be identified that the exports are done against which export orders

[@saraswatirinku]

Sir, For manufacturing entity - pre shipment export facility understood that it will cover Raw material procurement, manufacturing process etc till shipment but in case of IT services how this facility will be applicable?pls help

[@AnkushJain]

I will make a video on it since it is a detailed discussion

[@AnkushJain]

I will make a video on it since it is a detailed discussion

[@manishmishra5944]

Doubt : pre shipment ..how exporter recvs the payment ....as it received from debtor in post ship mnt facility na ..

[@AnkushJain]

If post shipment is availed then pre shipment is knocked by post shipment disbursal i.e. pre shipment is converted into post shipment finance

[@SYT3011]

Sir my customer has been asking for extension of preshipment as shipment is getting delayed.. what should I do to assess the export cycle.. it is in mba and other bank has higher tenure to client wants us to match the tenure bt credit is not comfortable

[@AnkushJain]

Pl check the actual cycle as per books. How much existing cycle is given and how much extension client wants? Can't he convert the same into post shipment?

[@hitakshaputhran8614]

does loan term loan is obligated for PCFC eligibility ?

[@AnkushJain]

No

[@yogeshsaluja488]

A client should choose epc or pcfc and why? (Taking the assumption the client can avail both of these relating to comditions of Msme and all)

[@AnkushJain]

MSME can choose either due to interest subvention benefit available on EPC. However only concern will be of foreign exchange fluctuations risk since in EPC, limit is in INR and forex conversion risk is there however in pcfc, account is maintained in foreign currency and loan is knocked off by foreign currency receipts and hence no fluctuations risk. For non msme client, pcfc is always better due to lower cost funding

[@DeepakKumar-xz6gc]

Sir , pre shipment credit 1 order jo aapne 100 t shirt ka bataya h, sirf 1 order k liye 6 month k liye sanction karege kya ?

[@AnkushJain]

Yes. But one order obviously will be of very low amount thus sanction amount shall also be too low

[@ArunVignesh-x6w]

Can CGTMSE cover be given instead of Collateral for applying Packing Credit? SBI is accepting while Union Bank is denying.

[@AnkushJain]

Internal policy. Some banks gives while some doesn't

[@ArunVignesh-x6w]

@@AnkushJain Thank you

[@AnkushJain]

👍👍

[@ArunVignesh-x6w]

@@AnkushJain If CGTMSE cover is accepted for Export Packing Credit, what is the logic behind that, since ECGC is also compulsory for every PC ? If anything goes wrong, Insurance can't be claimed from both ECGC and CGTMSE. Am i right?

[@AnkushJain]

Ecgc is not made mandatory by every bank. Further ecgc is mere an insurance. It is not at all related to cgtmse. In case of default, cgtmse will pay and any recovery from ecgc shall be paid back to govt. Proportionately

[@savydeshmukh3241]

Sir may I know the one thing packing credit limit facility only manufacturer ko hi provide karte he (as a merchant exporter ) products import karke 100 % export karte he to bank kya packing loan credit provide nahi kar sakte hai ?

[@AnkushJain]

Packing credit is available for all exporters.

[@rakeshsinha9486]

Kon sa bank pre shipment finance karta hai work order par without security?

[@AnkushJain]

Without security nahi krta koi. Although cgtmse mein apply karke dekh skte ho

[@vinay94095]

Today i seen this video. Just i want to know why the client is not using CC/OD. Why they approaching the bank for this new facility

[@AnkushJain]

Have you got your query answered? Or you have some query?

[@KalpShahGSTClasses]

Answer is normal CC OD rate of interest is much higher. Plus in that he won't get INTEREST EQUALIZATION SCHEMES BENEFITS. I HAVE SEPARATELY UPLOADED VIDEO ON INTEREST EQUALIZATION PLEASE CHECK MY CHANNEL

[@saraswatirinku]

Sir, There is one company which export fishes and shrimps to us market,they avail CC limit instead of packing credit facility.Any reason for using CC limit over pre and post shipment facility?

[@KalpShahGSTClasses]

Subsidy is now 2% or 3% in interest equalization scheme.

[@AnkushJain]

3% generally

[@abhishekpoddar8942]

I am an exporter, i have an export order of 40 Lakh rs from the buyer whom i export regularly since one year I have cc od limit in kotak bank already I want pre shipment credit epc in inr which can later transfer to post shipment credit But i dont have anything to give bank in collateral because property and fd already given Can bank consider the export purchase order and old inventory to avail us epc inr creadit?

[@AnkushJain]

You can avail it as sublimit but it you want additional and don't have property then you can request for cgtmse exposure

[@adityaamansingh6581]

sir, what about transactional risk, for that will both parties enter in future or forward risk?

[@AnkushJain]

Yes for forward risk like currency fluctuations, the parties do forward cover with banks. I have also explained that in detail in separate video. Link is given below kzbin.info/www/bejne/gJqblYyXgtKtr7M

[@AKamal-id5cl]

How we can intrest calculate on running packing credit

[@AnkushJain]

It is calculated on day end balances

[@AnkushJain]

It is calculated on day end balances

[@BadalKumar-gn7zv]

Sir hedging how is it possible in preshipment finance as the payment will be received after the export procedure has been completed and the loan amount of bank has to be repaid before preshipment can u elaborate it...

[@AnkushJain]

Pre shipment loan can be converted into post shipment finance by banks and thereby payment will get knock off on due date of payment

[@arunvignesh25]

Is it legal to apply for Packing credit from two different banks?

[@AnkushJain]

Yeah for different orders

[@arunvignesh25]

@@AnkushJain Thank you sir

[@AnkushJain]

👍👍

[@rajeevanms6206]

👍👍

[@AnkushJain]

Thank you 👍

[@Lelomotivation_hub]

Sir please elaborate about D&B rating of export buyers and ECGC Policy

[@AnkushJain]

Sure, will make video on it

[@Lelomotivation_hub]

@@AnkushJain thank you will wait

[@AnkushJain]

👍

[@hidaytullakhanbihari47]

Hi sir can use packing credit after shipment?

[@AnkushJain]

Post shipment facility to be used

[@AnkushJain]

Post shipment facility to be used

[@krishnaca3252]

If bank gives PCFC under sub-limit of main limit i.e suppose Cash credit 5 cr (PCFC 2.5 cr sublimit) what it means ? how it is beneficial ? can customer avail both limit i.e. total 7.5 crores ?

[@AnkushJain]

kzbin.info/www/bejne/jKncd2WHfJZ3rLc Pl watch above video. It will answer your query

[@rahulmakwana3690]

Pre shipment stock ke liye hoti he to use foreign currency me leke stock kese purchase kar sakte he

[@AnkushJain]

Foreign currency amount ko Indian currency mein convert kr deta hai bank

[@rahulmakwana3690]

@@AnkushJain matlab dono account me to INR me hi amount ayegi bas bank ki books pe EPC INR me khadi rahegi aur PCFC foreign currency me khadi rahegi barabat

[@AnkushJain]

Bs ik hi account hoga pcfc ka.. EPC ka nhi hoga ismein... Pcfc se amount transfer ho k INR mein convert ho k current account ya cc account mein credit ho jayegu

[@bhagyeshjoshi3497]

What are the penalties if we are not able to repay pcfc on time

[@AnkushJain]

Commercial rate of interest shall be charged from back date. Plus penal and overdue interest for non compliance around 2-4%

[@bhagyeshjoshi3497]

@@AnkushJain will credit score get reduced

[@bhagyeshjoshi3497]

@@AnkushJain can we get any extensions 1 month or more?

[@AnkushJain]

Yes it will

[@AnkushJain]

Yes extension is allowed for genuine cases

[@arvindsharma6752]

Sir, how we can convert Rs term loan in FCNR ...request you to pls add this in upcoming video as you already working in trade / foreign currency loan....

[@AnkushJain]

🙏

[@priyankaupadhyay9097]

Sir plz tell where EPC/pcfc is actually disbursed for utilisation? Is it disbursed in cc account or any other operative account ?

[@AnkushJain]

If client is having cc then it is always disbursed in cc account

[@priyankaupadhyay9097]

If it is disbursed in cc then it can be used for any payment like payment of salary etc?

[@AnkushJain]

Yes it can be used provided that it is used for working capital and for business purpose only

[@priyankaupadhyay9097]

Thanks Sir!

[@AnkushJain]

👍

[@rakeshsharma5905]

Sir have u prepared video on post shipment finance if yes then what is lecture number

[@AnkushJain]

Lecture no. 38

[@rakeshsharma5905]

@@AnkushJain OK THANKS I GOT, YOU DID WONDERFUL JOB WITH DETAIL INFORMATION

[@AnkushJain]

👍

[@vishaldev7729]

Sir, need to ask some doubts related to facilities already explained by you.

[@AnkushJain]

Yeah, pl ask here so that others can learn as well

[@vishaldev7729]

@@AnkushJain sir in one vedio you told that period of EPC is 180 days and in one example (where you explained operations),you took mentioned 3 months.please clarify

[@AnkushJain]

@@vishaldev7729 180 days is max. Period in most of cases. However we can also provide the facility for lower period as well. That is why I took example of 90 days in my video.

[@vishaldev7729]

@@AnkushJain sir assesment of various facilities will be explained in later vedios??

[@AnkushJain]

@@vishaldev7729 I was not planning that since there may change in method of calculating in different banks. However if required, I can make separate lecture

[@rahulwagh6070]

Sir can we give this facility for traders who are exporting ?

[@AnkushJain]

Yes we can

[@rahulwagh6070]

Sir one doubt. In running based facility - separate ac is opened for disbursement whether it Is epc or pcfc. In order to order base - no separate ac is opened. I think disbursement is given in cc/ca account. Then how disbursement will be done for pcfc here?

[@AnkushJain]

In running basis, only one account is opened while on order basis, each transaction is monitored separately. Disbursement of packing credit is always done in cc/current account in every case

[@ekanshmore812]

ECGC bought by banks against EPC, is it helpful for Exporters incase the buyer defaults payment?

[@AnkushJain]

Yes of course, it is an insurance and ultimately settles the banking dues

[@ekanshmore812]

@@AnkushJain Sir I need a little more guidance on this, is there a direct way of contacting you. Stuck in personal problem related to this.

[@AnkushJain]

Pl msg me on LinkedIn

[@ekanshmore812]

@@AnkushJain Messaged you Sir.

[@AnkushJain]

Ok will connect after getting free

[@ashutoshgaurav7104]

Nice video sir but I have Below mentioned queries.. 1. Borrower is exporter and manufacturing is happening within India means he will purchase the Raw materials and payment to labours etc will be in INR then why would someone opt the facility in foreign currency and let's say I have taken facility in foreign currency then I will have to convert the foreign currency into INR to purchase raw materials.. 2. Let's say I have taken the facility in INR and obviously if i am exporting then I will receive the payment in foreign currency then how this transaction will get cleared because two currencies are being involved.. 3. Why should I go for EPC in INR when I already having a CC facility with bank which is already in INR.. 4. Please also clear the assessment part on what basis bank will sanction the EPC to client and on what parameters.. Let's say the borrower is already having enough CC LIMIT and bank is not willing to enhance further CC limit to him, but the client is forcing the bank to sanction EPC limit otherwise he would exit to some other bank, what should be the banker approach..

[@AnkushJain]

1. In foreign currency, rate of interest is lower and as he will receive export payment in foreign currency the same will be knocked off against the outstanding debt in foreign currency so resulting in lower exchange risk

[@AnkushJain]

2. Foreign payment shall be converted into inr and then used for payment of outstanding

[@AnkushJain]

3. Epc is easier to avail then cc as banks are more comfortable in it.. further you may get benefit of lower rate for epc

[@AnkushJain]

4. Assessment video is already made separately. Pls watch

[@AnkushJain]

5. Bank can give epc as sublimit if they don't want to enhance

[@vikasaggarwal1902]

Hi Ankush, can PCFC facility be availed if exporter has issued DA bills? I am getting confused with the term "Cash Export" used in RBI circular. As per RBI guidelines "PCFC scheme is an additional window for providing pre-shipment credit to Indian exporters at internationally competitive rates of interest. It will be applicable to only CASH EXPORTS." Pls guide.

[@AnkushJain]

I guess with cash exports they mean to say that payments shall be received from exports through banking channels only and not by any barter system. But rest assured PCFC can be availed for both DA and DP bills

[@vikasaggarwal1902]

@@AnkushJain thanks for the clarification

[@AnkushJain]

👍

[@art_soul_words]

When will you upload CIBIL lecture?

[@AnkushJain]

Let me complete existing running topic of wc products first. Everything is taught in a particular sequence only

[@art_soul_words]

@@AnkushJain okay 🙏👍

[@madhuragrawal9398]

Can this be availed for domestic procurement of raw material also

[@AnkushJain]

Yes ofcourse. It is for that purpose only. The only point it, only exporters are eligible to apply for this facility

[@madhuragrawal9398]

Thank you Ankush

[@AnkushJain]

👍

[@soumyaroy808]

Sir, since the tenor of the EPC account in the example cited is 3 months, will the balance outstanding on 01/10/2021 has to be adjusted to zero by utilising post shipment finance or it will continue to run after review of the account after 3 months ?

[@AnkushJain]

It has to be zero after 3 months either by conversion to post shipment or knock off from customers payments

[@sayeediqbal8621]

HDFC Bank Working capital loan segment knowledge

[@AnkushJain]

Sorry? Could not get your query

[@mrinalkumar8533]

ITS EBN =Export bill negotiation.

[@AnkushJain]

👍

[@sarfarazkhan5899]

Thoda voice sahi kro sir please

[@AnkushJain]

Yes sarfraz.. starting k video mein aapko problem aayegi but ab last 1.5 years se Jo videos daali hai unmein clear hai