Packing Credit/ Export Loan

This facility offers a working capital financing for goods, which are to be exported. The facility is provided against specific Export Letter of Credit, maximum upto 70% of the documents value. The facility could be granted in the form of pre or post shipment credits.

Pre-shipment advance in the form of packing credit is made available to eligible exporters for the purpose of purchasing, manufacturing, packing and shipping of goods meant for exports against lodging a irrevocable LC established in favor of the exporter through a reputed bank, and a confirmed order/contract placed by the buyer for exports from Nepal.

Post-shipment advance is extended in the form of negotiation / purchase / discount of export bills drawn under letters of credit, confirmed orders / export contracts. The bills are negotiated / purchased / discounted at the Bank's bill buying rate prevailing on the date of negotiation, which is extremely competitive / attractive to the exporter. The maximum usance permissible for the export bills is 120 days.