RUPEE EXPORT CREDIT INTEREST RATES

As per the existing guidelines, banks charge interest rate not exceeding BPLR minus 2.5% on rupee pre-shipment credit up to 180 days and rupee post shipment credit up to 90 days. Banks will now charge interest rate not exceeding BPLR minus 4.5% on pre-shipment credit up to 180 days and post shipment credit up to 90 days on the outstanding amount for the period April 1, 2007 to December 31, 2007 to the specified export sectors. The Government has decided to provide interest subvention of 2 percentage points p.a. to all scheduled commercial banks.