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Rate of Interest: The interest payable on pre-shipment finance is usually lower than the normal rate, provided the credit is extinguished by lodging the export bills on remittances from abroad. If the exporter fails to do so they would not be able to avail concessional rate of interest.
In order to avail the packing credit, exporters are expected to make a formal application to the bank giving details of credit requirements along with the required documents.
Distinction between Spot and Forward Rates : You have learnt what spot and forward rates are. Let us now explain the distinction between both rates. Spot rates are applicable on t
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Running Account Facility: The RBI has permitted banks to grant packing credit advances even without lodgement of LIC or firm order /contract under the scheme of Running Account Fa
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Packing Credit : The basic purpose of packing credit is to enable the eligible exporters to procure process, manufacture or store the goods meant for export. Packing credit refe
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