Export Credit

Overview
Eligibility
Salient Features
Documentation

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Overview

For an exporter, the wait for a transaction to conclude and payment to be unlocked at the importer’s end is often long and challenging. LVB solves this problem through MSME Export Credit, which serves as a short-term loan facility to the exporter, often empowering him with an assurance of a scheduled recovery of his capital.

LVB offers the following Export Finance Facilities to MSME undertakings:
- Pre-shipment Finance
- Packing Credit Loan (PCL)
- Pre-shipment Credit in Foreign Currency (PCFC)
- Post-shipment Finance
- FDBP
- FUBD
- Foreign Bank Guarantee
- Letter of Guarantee – Foreign (LG – Foreign)
- Foreign Letter of Credit – FLC

Eligibility

a) Business enterprises engaged in trading, manufacturing or services sector activity-who intends to export their goods/services. Individuals, Proprietorships, Partnerships, Private Limited Companies and Public Limited Companies, HUFs and any other legally permissible entities.
b) GST Returns are compulsory.
c) No bar on age of the business entity.

Salient Features

a) Packing Credit Limit will be provided for Purchase of Raw Material, Processing/manufacturing & shipping of the finished goods to their overseas customers.
b) After shipment of the goods, the Bills/documents drawn on overseas customers will be discounted to nullify the pre-shipment liability. On receipt of payment from the overseas customer (proceeds of post-shipment credit), the Bills liability will be adjusted and the amount excess, if any received will be credited to the customer's account.
c) ECGC cover will be available.

Documentation