In order to promote Trading including Foreign Trade NCCBL shall fulfill its obligation on request by
extending following types of facilities
A. Export Finance
a) Non-Funded
1. Back to Back LC.
2. Accepted Bill for Payment.
b) Funded
1. Pre-Shipment Finance
(i). Export Cash Credit.
(ii). Packing Credit.
(iii). Secured Overdraft (Export).
2. Post- Shipment Finance.
(i). Foreign Documentary Bill Purchase.
B. Import Finance
a) Non-Funded
1. Letter of Credit.
b) Funded
1. Payment against Document (PAD)
2. Loan Trust Receipt (LTR)
3. Loan against Import Merchandise (LIM)

A. Export
a) Non-Funded
1. Back to Back LC
This facility shall be made available on request as Pre Shipment Export Finance. Under this
agreement, the bank finances an export by opening a letter of credit on behalf of the exporter who
has received a letter of credit from the overseas buyer but it is not the actual manufacturers or
producer of the exportable goods. The letter of credit is opened in favor of the actual producer or
supplier within or outside the country. Since the second letter of credit is opened on the strength of,
and backed by, another letter of credit it is called “Back-to-Back Letter of Credit.”
2. Accepted Bill for Payment
b) Funded
1. Pre-Shipment Finance
i) Export Cash Credit
This facility shall be made available on request as Pre Shipment Finance. On lien of acceptable Export
Orders with the bank/branch, an exporter can avail the facility for procurement of raw materials to be
exported as processed/finished product. As the financing is fraught with inherent risk, NCCBL shall
prefer assigning of Collateral Security as cover against the facility in addition to Export Orders. Bank
will prefer additional/alternate security like Insurance Coverage (ECG) etc. under the facility.

ii) Packing Credit
This facility also relates to financing at Pre shipment stage. NCCBL shall consider such facility under
defined guidelines against export of various commodities.
iii) Secured Overdraft (Export)

2. Post- Shipment Finance
i) Foreign Documentary Bill Purchase
Bank’s usual method of providing finance at the post shipment stage is negotiation of documents
under letters of credit. After shipment of the goods, the exporter submits the relative documents to
the bank for negotiation of the documents.
B. Import
1. Payment against Document (PAD)
This facility originates against payment of Import Bills on lodgment of CLEAN
shipping documents received from Foreign Correspondent against Letter of Credit
opened on behalf of the customers. This is an obligation which the bank shall
extend strictly on the merit of shipping document and which must conform to the
terms & conditions of LC.
2. Loan Trust Receipt (LTR)
Bank shall be selective in extending the facility but shall prefer due to comfort in binding the
customer legally. Generally such facility shall be against arrangement and preferably against
Collateral security favoring the bank.
3. Loan against Import Merchandise (LIM)
Loan against the security of merchandise imported through bank shall be allowed against Pledge of
goods. The procedure and conditions for allowing such facility under prior arrangement or forced
circumstances shall be strictly as per related guideline of the bank. Due to inherent complexities, the
portfolio should be discouraged.