PRE-SHIPMENT CREDIT IN FOREIGN CURRENCY (PCFC):
BOB provides PCFC in the foreign currency to the exporters enabling them to fund their procurement, manufacturing/ processing and packing requirements. These loans are available at very competitive international interest rates covering the cost of both domestic as well as import content of the exports. The PCFC can be availed in US$, Euro, GBP and Japanese Yen.
PCFC in foreign currency is available for a maximum period of -360- days from the date of first disbursement similar to the case of Rupee facility.
The corporates/ exporters having firm export orders or confirmed L/C are eligible for PCFC, provided they satisfy other credit norms of the Bank.
The forward covers can be booked in respect of future PCFC drawals.
The PCFC drawals are also permitted in cross currency subject to exporter bearing the risk in currency fluctuations. The cross currency drawals are restricted to US$. In case, the export order is in a non-designated currency like Swiss Franc etc. PCFC will be given only in US$. For orders in Euro, Pound Sterling and JPY, PCFC can be availed in the respective currencies or US$ at the choice of exporter.
PCFC is to be repaid with the proceeds of the export bill submitted after shipment.
In case of cancellation of export order, the PCFC can be closed by selling equivalent amount of foreign exchange at TT selling rate prevalent on the date of liquidation.
EXPORT BILL REDISCOUNTING :
BOB offers financing of export by way of bill discounting of export bills to provide post shipment finance to the exporters at competitive international rate of interest. This facility is available in -4- currencies i.e. US$, Pound Sterling, Euro and JPY.
The export bills (both Sight and Usance) can be purchased/ discounted provided they comply with the norms of the Bank/ RBI.
All exporters are eligible to cover the bills drawn under L/C, non-credit bills under sanctioned limits under the Bill discounting Scheme.
For further details, please contact the Bank of Baroda Branch nearest to you.