Tuesday, June 2, 2015
Pre Shipment credit is issued by a financial institution when the seller wants the payment of the goods before shipment. The main objectives behind
pre-shipment credit or pre export finance are to enable exporter to:
Procure raw materials.
Carry out manufacturing process.
Provide a secure warehouse for goods and raw materials.
Process and pack the goods.
Ship the goods to the buyers.
Meet other financial cost of the business.
Types of Pre Shipment credit Packing Credit Advance against cheques/draft etc. representing Advance Payments.
This facility is provided to an exporter who satisfies the following criteria
A ten digit importer exporter code number allotted by DGFT.
Exporter should not be in the caution list of RBI. If the goods to be exported are not under OGL (Open General License), the exporter should have the required license /quota permit to export the goods.
Packing credit facility can be provided to an exporter on production of the following evidences to the bank:
Formal application for release the packing credit with undertaking to the effect that the exporter would be ship the goods within stipulated due date and submit
the relevant shipping documents to the banks within prescribed time limit.
Firm order or irrevocable L/C or original cable / fax / telex message exchange between the exporter and the
License issued by DGFT if the goods to be exported fall under the restricted or canalized category. If the item falls under quota system, proper quota allotment proof needs to be submitted.
The confirmed order received from the overseas buyer should reveal the information about the full name and address of the overseas buyer, description quantity and value of goods (FOB or CIF), destination port and the last date of payment.
Advance against Cheque/Drafts received as advance payment
Where exporters receive direct payments from abroad by means of cheques/drafts etc. the bank may grant export credit at concessional rate to the exporters of goods track record, till the time of
realization of the proceeds of the cheques or draft etc. The Banks however, must satisfy themselves that the proceeds are against an export order.
Monday, June 1, 2015
LIBOR stands for London Interbank Offered Rate. The world's most widely used benchmark for short term bank borrowing rates.
LIBOR is the average interbank interest rate at which a selection of banks on the London money market are prepared to lend to one another. LIBOR comes in 7
maturities (from overnight to 12 months) and in 5 different currencies. The official LIBOR interest rates are announced
once per working day at around 11:45 a.m. In the past, the BBA/ICE published LIBOR rates for 5 more currencies
(Swedish krona, Danish krone, Canadian dollar, Australian dollar and New Zealand dollar) and 8 more maturities (2
weeks, 4, 5, 7, 8, 9, 10 and 11 months).
LIBOR is watched closely by both professionals and private individuals because the LIBOR interest rate is used as a base rate (benchmark) by banks and other financial institutions. Rises and falls in the LIBOR interest rates can therefore have consequences for the interest rates on all sorts of banking products such as savings accounts, mortgages and loans.
This site shows you the current and historic rates for all LIBOR interest rates. The interest rates on this site are
updated daily at around 6.00 p.m. (CET) so that you always have access to current, almost real-time LIBOR information. The table below shows a summary of the current rates for all LIBOR interest rates. If you click on the
links you will be able to view extensive current and historic information for the maturity concerned. The tabs allow you
to view the LIBOR interest rates for other currencies. At the bottom of the page you will find links to other pages with LIBOR information.