What you mean by Pre shipment credit FX Eligibility Criteria?

Pre-shipment facility allow you to get fund for expanding export growth just through the aid of trade receivable. It works as a working capital assistance for the purpose to procure raw material, processing & manufacturing of goods quality until the shipment takes place.

Pre-shipment finance Eligibility Criteria

Eligibility Criteria depends on various factors like age of individual, repayment history, business sales/turnover& Creditworthiness …etc.

Eligibility Criteria

• • Age Limit of Individuals – 25 to 65 years
• • Merchant exporters
• • Manufacturer exporters
• • This facility only availed by those exporters who has order on his own name
• • Some institutions fund for third party manufacturers who don’t have export on their own name
• • Exporter should not be in the caution list of Reserve Bank of India (RBI).

What are the factors generally affecting Pre shipment credit FX Eligibility Criteria?

There are top factors that generally affects pre-shipment finance eligibility criteria as given below: –

Not being an Exporter: – Pre-shipment facility only can be obtained if you meet the mandatory requirements of being a exporter. Therefore, being not an exporter, you fail to meet the criteria.

Exporter should not be in the caution list of RBI: – An exporter would be caution- listed by the Reserve Bank based on the recommendations of the AD bank concerned, depending upon the exporters track record with the AD bank and investigative agencies. The AD bank would make recommendations in this regard to the Regional Office concerned of the Foreign Exchange Department of the Reserve Bank in case the exporter has come to the adverse notice of the Enforcement Directorate (ED) / Central Bureau of Investigation (CBI) / Directorate of Revenue Intelligence (DRI) /any such other law enforcement agency and/or the exporter is not traceable and/or is not making sincere efforts to realise the export proceeds.

What are the ways to increase Pre shipment credit eligibility?

To increase eligibility, you need to consider Top points as given below, this will aid you in increasing your eligibility level.

Open account with preferred lenders: – This considered to be the best way to increase eligibility, by opening a bank account with your preferred lender 1 year earlier of availing loan will build trust to lender & a good financial history help them to know your creditworthiness.

Must hold Import & Export code no: – For any person doing import & export needs to get IEC Code on mandatory basis. As if you already owned it, then it shows how legally you are following the protocol & even enhances your eligibility strength to get finance.