Sir First of all thank you so much .my concepts were not clear about EPC,due to non exposure.but in my current branch there are 4 EPC ,but nobody is able to clear the concept. Now onwards I will be able to do it myself Thanks a lot
Thanks. Need to know how Interest subvention works. If full pre payment comes then how principle and interest to be adjusted in pre shipment finance. Tell us with ROI, when to debit, when to credit, Is any reversal happen in case of prepayment. Which kind of accounting entries affected in banking. Any contra/contingent entry to be made at the time of disbursement and if yes, when it will be reversed.
Very informative video.. Please elaborate how to do Calculation of PC limit.. Is there any difference between the regular limit calculation and order based limit calculation?.. Thank you..
MSME can choose either due to interest subvention benefit available on EPC. However only concern will be of foreign exchange fluctuations risk since in EPC, limit is in INR and forex conversion risk is there however in pcfc, account is maintained in foreign currency and loan is knocked off by foreign currency receipts and hence no fluctuations risk. For non msme client, pcfc is always better due to lower cost funding
Thank you sir for this lecture, but I have one query, that in pre shipment facility we are assessing loan for stock only and upto the date of bill of lading than how..order base tracking is possible because we receive payment after shipping and credit period given.
Hi Sir, If there is such facility as discussed in video is available then why clients ask CC limits for thier export business. Have one client where they export their goods to USA market but they have taken only CC limits from the banks under multiple banking arrangements. Pls help me understand what is the benefit for client to avail CC limit than pre/post export credit facility or they are misguided?
Buyers credit aur FCDL mein sirf yeah antar samajh aaya ki Buyer’s credit mein Libor + 250bps ki RBI nay capping Kari hui hai aur dusri taraf FCDL jo ki Bank ka apna product hai usmein Bank capping say jyada bhi charge kar sakta hai. Phir client FCDL kyu lega wo yo Buyers credit ko hi avail karna chahega. Please advice ya kuch sir bhi FCDL mein client ko fayda hai.
Koi as such nhi hai.. fcdl usually bahut rare banks mein available hai as product and some banks even don't use fcdl for making payment to supplier in foreign country which we can do easily from buyers credit
Sir aapne explain kia hai ki pcfc me jo credit milta h woh ek tarike se stock k liye hota hai aur currency risk ko mitigate krta hai aur foreign currency ko knock off krne k liye easy hai. Lekin yeh credit ko toh INR me convert krke manufacturing ke liye india me use krna padega fir isse knock off kaise kia jayega??
Jab foreign se payment aayegi foreign currency mein to Jo pcfc account hai vo foreign currency mein hoga to foreign currency to foreign currency knock off ho jayega
Sir, I have some query.. 1.can a firm takes WC limits from different bank with multiple banking?? I mean CC limit from HDFC bank and OD limit from ICICI Bank.. 2. Can a business take 2 cc or two OD limit from different bank.. Eg. 10cr CC from Axis Bank and 5cr CC from Kotak Bank? Is it possible.. Sir plz reply..
Sir In Order Based Facility you have mentioned that Bank only want Payment from the party for which PCFC has been issued. But facility is Pre-shipment and Payment from the buyer will be done post receiving of products. Suppose client need 90 from manufacturing to generation of BOL so bank will sanction the facility for 90 days itself. But in actual payment from the buyer will be post receiving of shipment and clearance of all docs which may additionally takes 15-20 days. So in this pre shipment facility how could bank demand that payment should be from that particular buyers. This is the 90 days facility and person who has availed this will make the payment to bank. Plz clear
Hi this is done to check the clear end use. Since if this is not followed then clients will provide fake export orders of other parties whom they are not exporting and keep on availing packing credit. If that is so then it may also happen that packing credit is taken in USD for export orders of America but actually client did export to Europe and received payment in euros. Each export order is properly mentioned in export docs made by seller so that it can be identified that the exports are done against which export orders
As of 30.06.2023, my CC limit is 100, and the stock statement indicates stocks worth 133 (75% + 25% of the CC limit), resulting in a CC drawing power (DP) of 100. I have availed 25 from the PC limit, which has been transferred to my CC account. However, due to unexpected certification delays, I have not utilized this amount for purchasing stock by the end of the month. As of 30.06.2023, my CC utilization stands at 90, leaving a balance of 35 (100 - 90 + 25). I understand that my CC DP is currently calculated as 100, but I have a concern regarding the unutilized balance of 25 from the PC limit. Would the bank consider this unutilized PC amount to increase my CC DP? If no, since I have not utilized the funds and bank has not considered the same in calculating DP, Can I request the bank to close my PC disbursement??
Very tricky situation but bank won't consider this. You must put request first to the bank for closure of pc immediately. As and when you get the DP and debtors payment, pl close this packing credit. Just for your info, packing credit utilisation should be deducted from dp calculation always. Further i suggest you to speak with the bank and see if they can credit the pc drawdown in the current account instead of cc account for future transactions
Hi sir gr8 lecture as usual. Few doubts - 1.For packing credit (pre or post), when client comes to us bankers & asks us for facility, should the sanction amount we give be against only one export order or multiple? if multiple, how will we calculate the sanction amount? 2. Since the primary risk seems to be importer defaulting on payment to exporter, shouldn't we as credit analyst spend more time assessing credit worthiness of clients customer like company name, financials, CIBIL etc.? Thanks sir.
For point 1, i have made separate video on eligibility calculator of export finance. For point 2, we usually receive d & b report of foreign customers to check their health
Hi Sir, 1.Can client use PCFC limit to make payment for importing raw material from foreign country? 2.In running limit based facility, it is necessary to check whether timely knock off happening or not , say 90 days period so , if one disbursement done on particular date then from that date to 90 days , credit from importer or self / internal payment has to be made in this account? 3. In Order based limit, it is based on logics thag advance payment from importer before shipment right? 4. In order Based limit , what if some how order gets cancelled , then how customer will repay loan as banks want payment from his party only?
3. Could not understand your 3rd question. Please elaborate 4. Customer has to knock off either from own sources or we can knock off from client od/cc limit and charge penal and commercial rate from the date of original disb. Of that pcfc
Thank you sir for clearing doubts. My 3rd question was that Order based limit is based on logic of receiving advance payment from importer before shipment of goods ?
Yes for forward risk like currency fluctuations, the parties do forward cover with banks. I have also explained that in detail in separate video. Link is given below ua-cam.com/video/Ji8dYaMmzyQ/v-deo.html
Sir my customer has been asking for extension of preshipment as shipment is getting delayed.. what should I do to assess the export cycle.. it is in mba and other bank has higher tenure to client wants us to match the tenure bt credit is not comfortable
Pl check the actual cycle as per books. How much existing cycle is given and how much extension client wants? Can't he convert the same into post shipment?
@@AnkushJain i am banker and from Pakistan sir and working in export department .Although u talk about credit but i daily pratice all these in my trade and finance depart. Your lectures are really blessing and helpful for me in deep understanding.i would like that u cover other areas of international trade also,esp elaborate UCP 600 and URC540 step wise.
I am an exporter, i have an export order of 40 Lakh rs from the buyer whom i export regularly since one year I have cc od limit in kotak bank already I want pre shipment credit epc in inr which can later transfer to post shipment credit But i dont have anything to give bank in collateral because property and fd already given Can bank consider the export purchase order and old inventory to avail us epc inr creadit?
Sir, For manufacturing entity - pre shipment export facility understood that it will cover Raw material procurement, manufacturing process etc till shipment but in case of IT services how this facility will be applicable?pls help
If bank gives PCFC under sub-limit of main limit i.e suppose Cash credit 5 cr (PCFC 2.5 cr sublimit) what it means ? how it is beneficial ? can customer avail both limit i.e. total 7.5 crores ?
@@AnkushJain If CGTMSE cover is accepted for Export Packing Credit, what is the logic behind that, since ECGC is also compulsory for every PC ? If anything goes wrong, Insurance can't be claimed from both ECGC and CGTMSE. Am i right?
Ecgc is not made mandatory by every bank. Further ecgc is mere an insurance. It is not at all related to cgtmse. In case of default, cgtmse will pay and any recovery from ecgc shall be paid back to govt. Proportionately
Answer is normal CC OD rate of interest is much higher. Plus in that he won't get INTEREST EQUALIZATION SCHEMES BENEFITS. I HAVE SEPARATELY UPLOADED VIDEO ON INTEREST EQUALIZATION PLEASE CHECK MY CHANNEL
Sir, There is one company which export fishes and shrimps to us market,they avail CC limit instead of packing credit facility.Any reason for using CC limit over pre and post shipment facility?
Sir hedging how is it possible in preshipment finance as the payment will be received after the export procedure has been completed and the loan amount of bank has to be repaid before preshipment can u elaborate it...
Sir, how we can convert Rs term loan in FCNR ...request you to pls add this in upcoming video as you already working in trade / foreign currency loan....
Sir may I know the one thing packing credit limit facility only manufacturer ko hi provide karte he (as a merchant exporter ) products import karke 100 % export karte he to bank kya packing loan credit provide nahi kar sakte hai ?
Sir how is pre-shipment finance assessed as it is difficult to distinguish the inventory as inventory for domestic sales and inventory for export sales. In such a situation how is the sanctioned limit arrived at ?
Hi Ankush, can PCFC facility be availed if exporter has issued DA bills? I am getting confused with the term "Cash Export" used in RBI circular. As per RBI guidelines "PCFC scheme is an additional window for providing pre-shipment credit to Indian exporters at internationally competitive rates of interest. It will be applicable to only CASH EXPORTS." Pls guide.
I guess with cash exports they mean to say that payments shall be received from exports through banking channels only and not by any barter system. But rest assured PCFC can be availed for both DA and DP bills
Sir, since the tenor of the EPC account in the example cited is 3 months, will the balance outstanding on 01/10/2021 has to be adjusted to zero by utilising post shipment finance or it will continue to run after review of the account after 3 months ?
@@AnkushJain sir in one vedio you told that period of EPC is 180 days and in one example (where you explained operations),you took mentioned 3 months.please clarify
@@vishaldev7729 180 days is max. Period in most of cases. However we can also provide the facility for lower period as well. That is why I took example of 90 days in my video.
@@vishaldev7729 I was not planning that since there may change in method of calculating in different banks. However if required, I can make separate lecture
@@AnkushJain matlab dono account me to INR me hi amount ayegi bas bank ki books pe EPC INR me khadi rahegi aur PCFC foreign currency me khadi rahegi barabat
Bs ik hi account hoga pcfc ka.. EPC ka nhi hoga ismein... Pcfc se amount transfer ho k INR mein convert ho k current account ya cc account mein credit ho jayegu
Sir one doubt. In running based facility - separate ac is opened for disbursement whether it Is epc or pcfc. In order to order base - no separate ac is opened. I think disbursement is given in cc/ca account. Then how disbursement will be done for pcfc here?
In running basis, only one account is opened while on order basis, each transaction is monitored separately. Disbursement of packing credit is always done in cc/current account in every case
Ek ek cheez jo bariki se samjhaye wahi hai real teacher.....
Thank you ...👌👌
Keep going
Thank you 😊
Thank you Ankush for helping the growing exporters. We highly appreciates your efforts
Thank you 😊
Great Sir, You have elaborated every terms deeply. Concept cleared, Thank You
Your welcome
Sir
First of all thank you so much .my concepts were not clear about EPC,due to non exposure.but in my current branch there are 4 EPC ,but nobody is able to clear the concept.
Now onwards I will be able to do it myself
Thanks a lot
Thank you 😊😊
This is the first video on yourtube..Which give insight of all details..In aapect of banker..Plz keep the work on...
Thank you 👍
Really very helpful video.....
Thank you so much
Your welcome
Great video sir... Solved all doubts regarding export credit.. just love your channel it's a mini course to be a banker
Thank you
@@AnkushJain thank sir you have teach properly
👍
Very informative video sir and explain very well thankyou so much for this free videos.
Your welcome 👍
Great sir, you've just cleared my all doubts.
Glad to know that 😊
Thank you so much sir for videos
All videos are very useful for me
Thank you
Great Sir... Bahut achche se padhaye hai
Thank you
THANK U SIR, YOU ARE TOP OF THE WORLD, MANY MANY THANK SUCH A WODERFUL INFORMATION
Thank you Rakesh
A bow to you for guiding on such topics. A big thanks to you. Subscribed !!
👍
Very Very conceptual
Thank you
Very well explained. Thanks so much sir
Your welcome 👍
Very valuable informations thanks 🙏
Thank you
Very useful information.. Thanks
Your welcome
Great lecture for credit manager and RM
Thank you
Thanks for valuable information shared with us
Your welcome
Thank u so much sir for deep understanding
Thank you
Beautifully explained ❤
Thank you
Great sir..... really needed this
Your welcome
Super
Properly Explained
Thank you
Great Sir
Very informative😊
Thank you
Bhot badiya Jain Saab!!
Thank you 👍
Greatly insightful
Thank you
Subsidy is now 2% or 3% in interest equalization scheme.
3% generally
Thanks. Need to know how Interest subvention works. If full pre payment comes then how principle and interest to be adjusted in pre shipment finance. Tell us with ROI, when to debit, when to credit, Is any reversal happen in case of prepayment. Which kind of accounting entries affected in banking. Any contra/contingent entry to be made at the time of disbursement and if yes, when it will be reversed.
Ok
Very well explained Sirji😊
Thank you Bhai ☺️
Very informative video.. Please elaborate how to do Calculation of PC limit.. Is there any difference between the regular limit calculation and order based limit calculation?.. Thank you..
Thank you. There is separate video available on calculation of PC limit
Very well explained Sir..
Thank you
Very well explained.
Thank you
Awesome
@@Shillpijain thank you
Thankyou sir 😊
Your welcome
A client should choose epc or pcfc and why? (Taking the assumption the client can avail both of these relating to comditions of Msme and all)
MSME can choose either due to interest subvention benefit available on EPC. However only concern will be of foreign exchange fluctuations risk since in EPC, limit is in INR and forex conversion risk is there however in pcfc, account is maintained in foreign currency and loan is knocked off by foreign currency receipts and hence no fluctuations risk. For non msme client, pcfc is always better due to lower cost funding
Thank you sir for this lecture, but I have one query, that in pre shipment facility we are assessing loan for stock only and upto the date of bill of lading than how..order base tracking is possible because we receive payment after shipping and credit period given.
Couldn't get your query
Very useful one
Thank you
Subtitles are missing. But wonderful lectures.
Thank you
Thank u so much sir
Your welcome
Sir, thank you for details
Please do video on pcfc knock off on inward remittance
👍👍
Great..Liked
Thank you
Sir could you please clarify on labor and SOFR rate. I mean key differences. This rate is used in foreign credit facilities..
Pl watch this
ua-cam.com/video/OMS2_Qu31nM/v-deo.html
Great sir
Thank you sheetal
Hi Sir,
If there is such facility as discussed in video is available then why clients ask CC limits for thier export business.
Have one client where they export their goods to USA market but they have taken only CC limits from the banks under multiple banking arrangements.
Pls help me understand what is the benefit for client to avail CC limit than pre/post export credit facility or they are misguided?
Can be a case of misguidance or a case where client want to escape the monitoring mechanism of EPC limit and thus preferring cc limit
Buyers credit aur FCDL mein sirf yeah antar samajh aaya ki Buyer’s credit mein Libor + 250bps ki RBI nay capping Kari hui hai aur dusri taraf FCDL jo ki Bank ka apna product hai usmein Bank capping say jyada bhi charge kar sakta hai.
Phir client FCDL kyu lega wo yo Buyers credit ko hi avail karna chahega.
Please advice ya kuch sir bhi FCDL mein client ko fayda hai.
Koi as such nhi hai.. fcdl usually bahut rare banks mein available hai as product and some banks even don't use fcdl for making payment to supplier in foreign country which we can do easily from buyers credit
Sir aapne explain kia hai ki pcfc me jo credit milta h woh ek tarike se stock k liye hota hai aur currency risk ko mitigate krta hai aur foreign currency ko knock off krne k liye easy hai. Lekin yeh credit ko toh INR me convert krke manufacturing ke liye india me use krna padega fir isse knock off kaise kia jayega??
Jab foreign se payment aayegi foreign currency mein to Jo pcfc account hai vo foreign currency mein hoga to foreign currency to foreign currency knock off ho jayega
Very very informative.. great going sir🙂🙂👍
Thank you
@@TheSuresh2022 why? That will be too quick I guess.
Sir, I have some query..
1.can a firm takes WC limits from different bank with multiple banking?? I mean CC limit from HDFC bank and OD limit from ICICI Bank..
2. Can a business take 2 cc or two OD limit from different bank..
Eg. 10cr CC from Axis Bank and 5cr CC from Kotak Bank? Is it possible..
Sir plz reply..
@@TheSuresh2022 they can. But it is banks discretion.
Sir In Order Based Facility you have mentioned that Bank only want Payment from the party for which PCFC has been issued. But facility is Pre-shipment and Payment from the buyer will be done post receiving of products. Suppose client need 90 from manufacturing to generation of BOL so bank will sanction the facility for 90 days itself. But in actual payment from the buyer will be post receiving of shipment and clearance of all docs which may additionally takes 15-20 days. So in this pre shipment facility how could bank demand that payment should be from that particular buyers. This is the 90 days facility and person who has availed this will make the payment to bank.
Plz clear
Hi this is done to check the clear end use. Since if this is not followed then clients will provide fake export orders of other parties whom they are not exporting and keep on availing packing credit. If that is so then it may also happen that packing credit is taken in USD for export orders of America but actually client did export to Europe and received payment in euros. Each export order is properly mentioned in export docs made by seller so that it can be identified that the exports are done against which export orders
Can exporter avail a single preshipment order based disbursment having different purchase order with different buyer name ?
Yes
If Interest is debited in CA, can we consider the EPC Disbursement credit as interest servicing ???
System will consider but for our purpose we should not consider as it is loan disbursement only
As of 30.06.2023, my CC limit is 100, and the stock statement indicates stocks worth 133 (75% + 25% of the CC limit), resulting in a CC drawing power (DP) of 100.
I have availed 25 from the PC limit, which has been transferred to my CC account. However, due to unexpected certification delays, I have not utilized this amount for purchasing stock by the end of the month.
As of 30.06.2023, my CC utilization stands at 90, leaving a balance of 35 (100 - 90 + 25). I understand that my CC DP is currently calculated as 100, but I have a concern regarding the unutilized balance of 25 from the PC limit. Would the bank consider this unutilized PC amount to increase my CC DP? If no, since I have not utilized the funds and bank has not considered the same in calculating DP, Can I request the bank to close my PC disbursement??
Very tricky situation but bank won't consider this. You must put request first to the bank for closure of pc immediately. As and when you get the DP and debtors payment, pl close this packing credit. Just for your info, packing credit utilisation should be deducted from dp calculation always. Further i suggest you to speak with the bank and see if they can credit the pc drawdown in the current account instead of cc account for future transactions
@@AnkushJain whether submitting stock statement is mandatory for PC??
No. Rest it depends on internal policy of the bank. I don't take stock statement in pc cases
VERY NICE PRESENTATION
Thank you
Very helpful
Thank you
Hi sir gr8 lecture as usual. Few doubts -
1.For packing credit (pre or post), when client comes to us bankers & asks us for facility, should the sanction amount we give be against only one export order or multiple? if multiple, how will we calculate the sanction amount?
2. Since the primary risk seems to be importer defaulting on payment to exporter, shouldn't we as credit analyst spend more time assessing credit worthiness of clients customer like company name, financials, CIBIL etc.? Thanks sir.
For point 1, i have made separate video on eligibility calculator of export finance.
For point 2, we usually receive d & b report of foreign customers to check their health
@@AnkushJain thank you so much
👍
A
Any query?
Doubt : pre shipment ..how exporter recvs the payment ....as it received from debtor in post ship mnt facility na ..
If post shipment is availed then pre shipment is knocked by post shipment disbursal i.e. pre shipment is converted into post shipment finance
does loan term loan is obligated for PCFC eligibility ?
No
Hi Sir,
1.Can client use PCFC limit to make payment for importing raw material from foreign country?
2.In running limit based facility, it is necessary to check whether timely knock off happening or not , say 90 days period so , if one disbursement done on particular date then from that date to 90 days , credit from importer or self / internal payment has to be made in this account?
3. In Order based limit, it is based on logics thag advance payment from importer before shipment right?
4. In order Based limit , what if some how order gets cancelled , then how customer will repay loan as banks want payment from his party only?
1. Yes
2. Not possible in running limit since order based tracking not done. You have to rely on cibil and check banking for overdue or penal charges.
3. Could not understand your 3rd question. Please elaborate
4. Customer has to knock off either from own sources or we can knock off from client od/cc limit and charge penal and commercial rate from the date of original disb. Of that pcfc
Thank you sir for clearing doubts.
My 3rd question was that Order based limit is based on logic of receiving advance payment from importer before shipment of goods ?
No such presumption
sir, what about transactional risk, for that will both parties enter in future or forward risk?
Yes for forward risk like currency fluctuations, the parties do forward cover with banks. I have also explained that in detail in separate video. Link is given below
ua-cam.com/video/Ji8dYaMmzyQ/v-deo.html
Sir my customer has been asking for extension of preshipment as shipment is getting delayed.. what should I do to assess the export cycle.. it is in mba and other bank has higher tenure to client wants us to match the tenure bt credit is not comfortable
Pl check the actual cycle as per books. How much existing cycle is given and how much extension client wants? Can't he convert the same into post shipment?
Very good effort .keep it up
Thank you
@@AnkushJain i am banker and from Pakistan sir and working in export department .Although u talk about credit but i daily pratice all these in my trade and finance depart. Your lectures are really blessing and helpful for me in deep understanding.i would like that u cover other areas of international trade also,esp elaborate UCP 600 and URC540 step wise.
Thank you 👍
@@AnkushJain thanks for acknowldge .
Thank u sir. U have cleared most of my doubt. can u cover the software used in banks with field details
Thank you Archana. Softwares are internal information of banks and it can not be shared on social platforms
I am an exporter, i have an export order of 40 Lakh rs from the buyer whom i export regularly since one year
I have cc od limit in kotak bank already
I want pre shipment credit epc in inr which can later transfer to post shipment credit
But i dont have anything to give bank in collateral because property and fd already given
Can bank consider the export purchase order and old inventory to avail us epc inr creadit?
You can avail it as sublimit but it you want additional and don't have property then you can request for cgtmse exposure
Sir,
For manufacturing entity - pre shipment export facility understood that it will cover Raw material procurement, manufacturing process etc till shipment but in case of IT services how this facility will be applicable?pls help
I will make a video on it since it is a detailed discussion
I will make a video on it since it is a detailed discussion
Nice sir
Thank you
Superb… Pls share the link for post shipment credit facilities
Thank you
If bank gives PCFC under sub-limit of main limit i.e suppose Cash credit 5 cr (PCFC 2.5 cr sublimit) what it means ? how it is beneficial ? can customer avail both limit i.e. total 7.5 crores ?
ua-cam.com/video/VxyF2QG1DvU/v-deo.html
Pl watch above video. It will answer your query
Can CGTMSE cover be given instead of Collateral for applying Packing Credit? SBI is accepting while Union Bank is denying.
Internal policy. Some banks gives while some doesn't
@@AnkushJain Thank you
👍👍
@@AnkushJain If CGTMSE cover is accepted for Export Packing Credit, what is the logic behind that, since ECGC is also compulsory for every PC ? If anything goes wrong, Insurance can't be claimed from both ECGC and CGTMSE. Am i right?
Ecgc is not made mandatory by every bank. Further ecgc is mere an insurance. It is not at all related to cgtmse. In case of default, cgtmse will pay and any recovery from ecgc shall be paid back to govt. Proportionately
When will you upload CIBIL lecture?
Let me complete existing running topic of wc products first. Everything is taught in a particular sequence only
@@AnkushJain okay 🙏👍
Nice lecture
Thank you
Sir please elaborate about D&B rating of export buyers and ECGC Policy
Sure, will make video on it
@@AnkushJain thank you will wait
👍
Today i seen this video. Just i want to know why the client is not using CC/OD. Why they approaching the bank for this new facility
Have you got your query answered? Or you have some query?
Answer is normal CC OD rate of interest is much higher. Plus in that he won't get INTEREST EQUALIZATION SCHEMES BENEFITS. I HAVE SEPARATELY UPLOADED VIDEO ON INTEREST EQUALIZATION PLEASE CHECK MY CHANNEL
Sir,
There is one company which export fishes and shrimps to us market,they avail CC limit instead of packing credit facility.Any reason for using CC limit over pre and post shipment facility?
Sir hedging how is it possible in preshipment finance as the payment will be received after the export procedure has been completed and the loan amount of bank has to be repaid before preshipment can u elaborate it...
Pre shipment loan can be converted into post shipment finance by banks and thereby payment will get knock off on due date of payment
Kon sa bank pre shipment finance karta hai work order par without security?
Without security nahi krta koi. Although cgtmse mein apply karke dekh skte ho
Sir, how we can convert Rs term loan in FCNR ...request you to pls add this in upcoming video as you already working in trade / foreign currency loan....
🙏
Sir may I know the one thing packing credit limit facility only manufacturer ko hi provide karte he (as a merchant exporter ) products import karke 100 % export karte he to bank kya packing loan credit provide nahi kar sakte hai ?
Packing credit is available for all exporters.
👌
Thank you
Sir please publish a Book in which all these topics are covered even should be purchased
Will try
@@AnkushJain Yes Sir I am addicted to your lectures
Thank you
Sir how is pre-shipment finance assessed as it is difficult to distinguish the inventory as inventory for domestic sales and inventory for export sales. In such a situation how is the sanctioned limit arrived at ?
Just focus on export sales and apply export cycle over the sales and calculate accordingly
@@AnkushJain Ok Sir
How we can intrest calculate on running packing credit
It is calculated on day end balances
It is calculated on day end balances
Hi Ankush, can PCFC facility be availed if exporter has issued DA bills? I am getting confused with the term "Cash Export" used in RBI circular. As per RBI guidelines "PCFC scheme is an additional window for providing pre-shipment credit to Indian exporters at internationally competitive rates of interest. It will be applicable to only CASH EXPORTS." Pls guide.
I guess with cash exports they mean to say that payments shall be received from exports through banking channels only and not by any barter system. But rest assured PCFC can be availed for both DA and DP bills
@@AnkushJain thanks for the clarification
👍
ECGC bought by banks against EPC, is it helpful for Exporters incase the buyer defaults payment?
Yes of course, it is an insurance and ultimately settles the banking dues
@@AnkushJain Sir I need a little more guidance on this, is there a direct way of contacting you. Stuck in personal problem related to this.
Pl msg me on LinkedIn
@@AnkushJain Messaged you Sir.
Ok will connect after getting free
Sir plz tell where EPC/pcfc is actually disbursed for utilisation? Is it disbursed in cc account or any other operative account ?
If client is having cc then it is always disbursed in cc account
If it is disbursed in cc then it can be used for any payment like payment of salary etc?
Yes it can be used provided that it is used for working capital and for business purpose only
Thanks Sir!
👍
Sir , pre shipment credit 1 order jo aapne 100 t shirt ka bataya h, sirf 1 order k liye 6 month k liye sanction karege kya ?
Yes. But one order obviously will be of very low amount thus sanction amount shall also be too low
HDFC Bank Working capital loan segment knowledge
Sorry? Could not get your query
Hi sir can use packing credit after shipment?
Post shipment facility to be used
Post shipment facility to be used
Sir, since the tenor of the EPC account in the example cited is 3 months, will the balance outstanding on 01/10/2021 has to be adjusted to zero by utilising post shipment finance or it will continue to run after review of the account after 3 months ?
It has to be zero after 3 months either by conversion to post shipment or knock off from customers payments
Is it legal to apply for Packing credit from two different banks?
Yeah for different orders
@@AnkushJain Thank you sir
👍👍
Sir, need to ask some doubts related to facilities already explained by you.
Yeah, pl ask here so that others can learn as well
@@AnkushJain sir in one vedio you told that period of EPC is 180 days and in one example (where you explained operations),you took mentioned 3 months.please clarify
@@vishaldev7729 180 days is max. Period in most of cases. However we can also provide the facility for lower period as well. That is why I took example of 90 days in my video.
@@AnkushJain sir assesment of various facilities will be explained in later vedios??
@@vishaldev7729 I was not planning that since there may change in method of calculating in different banks. However if required, I can make separate lecture
Can this be availed for domestic procurement of raw material also
Yes ofcourse. It is for that purpose only. The only point it, only exporters are eligible to apply for this facility
Thank you Ankush
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Sir have u prepared video on post shipment finance if yes then what is lecture number
Lecture no. 38
@@AnkushJain OK THANKS I GOT, YOU DID WONDERFUL JOB WITH DETAIL INFORMATION
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Pre shipment stock ke liye hoti he to use foreign currency me leke stock kese purchase kar sakte he
Foreign currency amount ko Indian currency mein convert kr deta hai bank
@@AnkushJain matlab dono account me to INR me hi amount ayegi bas bank ki books pe EPC INR me khadi rahegi aur PCFC foreign currency me khadi rahegi barabat
Bs ik hi account hoga pcfc ka.. EPC ka nhi hoga ismein... Pcfc se amount transfer ho k INR mein convert ho k current account ya cc account mein credit ho jayegu
What are the penalties if we are not able to repay pcfc on time
Commercial rate of interest shall be charged from back date. Plus penal and overdue interest for non compliance around 2-4%
@@AnkushJain will credit score get reduced
@@AnkushJain can we get any extensions 1 month or more?
Yes it will
Yes extension is allowed for genuine cases
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Thank you 👍
ITS EBN =Export bill negotiation.
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Sir can we give this facility for traders who are exporting ?
Yes we can
Sir one doubt.
In running based facility - separate ac is opened for disbursement whether it Is epc or pcfc.
In order to order base - no separate ac is opened. I think disbursement is given in cc/ca account. Then how disbursement will be done for pcfc here?
In running basis, only one account is opened while on order basis, each transaction is monitored separately. Disbursement of packing credit is always done in cc/current account in every case
Thoda voice sahi kro sir please
Yes sarfraz.. starting k video mein aapko problem aayegi but ab last 1.5 years se Jo videos daali hai unmein clear hai
Great Sir
Thank you
Great sir
Thank you