10 years Export Loan permitted
The Reserve Bank of India (RBI) has permitted banks to give exporters, with a minimum of 3 years satisfactory track record, long-term export advance up to a maximum period of 10 years. The exporters can receive export advance from banks (authorised to deal in foreign exchange or Authorised Dealer Bank) only for execution of long-term supply contracts for export of goods, subject to conditions. The conditions specified by the central bank include firm irrevocable supply orders & company having capacity, systems and processes in place to ensure that the orders over the duration of the said tenure can actually be executed. Product pricing should be in consonance with prevailing international prices.