Banking Procedures

While exporting the carpets, kumari rugs need to deal with certain institute like
Bank, Insurance Company, etc and so on.. In the other hand, there are different
financial assists, payment method and Insurance policy.

Finance plays vital role in exporting goods which is helped by the government as
well as bank and it needs to be go by different procedures: Financing up 90% of
FOB( Freight on Board) values of export which is provided mostly by bank and it
needs to go through different procedures. Furthermore, banks also provide loan at
low interest rate with 6% per annum which help us to procure materials, packing or
for other export related purposes. And another one is short term credit, it is also
provided by bank on the basis of instructions provided by government time to time
to help exporters to meet their financial requirements.

During exporting the carpets, we need to make advance payment which is also
called as "Safe Mode of Payment". However, it carries little risk by the point of
buyer but now, it becomes easier because many every transactions are done
through bank. Likewise, letter of credit L/C, D.A.P or D/P basis- Documents
against payment and D.A terms means Document against acceptance.

At the same time, while exporting our carpets we need to make some insurance in-
order to low the risk. As we are exporting our Carpets in India, so the best
insurance policy will be Cargo Insurance which is enough to repay us for not only
lost or damaged products but for your extra time and trouble and those lost profits.
It also covers everything except man’s inhumanity to man -- war, strikes, riots and
civil commotion -- and inherent vice in the cargo.