INTERNATIONAL

TRADE FINANCE
BY,
THOWFIKA S
POST SHIPMENT FINANCE

Post-shipment finance
refers to the credit
extended to the exporters
after the shipment of goods
for meeting working capital
requirement.
Post shipment finance for exporter:
Loan against LOC:
The bank extends post-shipment credit at a concessional interest rate by
purchasing or discounting these bills.

Post shipment finance for importer:

Loan against goods:
on deferred payment term:
Banks may grant post-shipment credit on deferred payment terms for a
period exceeding one year, in respect of export of capital and producer goods as
specified by RBI from time to time.
Who can apply for post shipment finance?

• All kinds of exporters, including merchant exporters, manufacturer exporters, export houses,
trading houses, and manufacturers who supply to merchant exporters, export houses and trading
houses  

• Both individuals as well as companies involved in export

• Any other legal entity engaged in the export of goods

‍

Sources of post shipment finance:

• Banks
• EXIM BANK
• Non-banking financial corporations(NBFC)
THANK YOU