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About Export & Import Loans

 

IMPORT LOANS

An import Loan is a momentary loan (with response) that empowers the client as a merchant to meet the customer‟s prompt installment commitments under a sight or usance Letter of Credit introduction or Import Documentary Collection. Under such courses of action, Bank funds the customer‟s import responsibilities by making installment against the Letter of Credit or Documentary Collection and gets installment from the client at a pre-determined date later on. Here, the credit time frame between the time that the bank gives money and the time the client reimburses the bank, ought to be adequate for the client to either fabricate products for conclusive deal or for direct deal to end purchasers.

This will enable the clients progressively money related assets to clear merchandise from the port and production, store or orchestrate last deal to the end purchaser

The provider is autonomous of the way toward raising account. They need not sign any documentation, however get installment according to the first contract terms through the Letter of Credit or Bill for Collection

As the client can repay the providers on a sight premise or when the tenor is expected, this will build the bartering intensity of the client – regularly in terms of the agreement cost.

EXPORT LOANS

An export business can be started in India by registering a Private Limited Company or LLP and obtaining the necessary tax registration like VAT / TIN Registration or Service Tax Registration. In addition to the business registration and tax registration, export businesses must also obtain Import Export Code (IEC).

Banks play an important role for an export business as all payments must be received through the Bank. Therefore, it is important to choose the right bank having Foreign Trade capabilities while opening the bank account for the export business.

With regards to entering another export market, or growing a current one, you need to ensure your residential income and financing go continuous. Through an association with cochin financial services, we can enable you to help your abroad income and construct your worldwide deals and client base, without influencing your built up tasks.


Letter of Credit (LC)

A Letter of Credit (LC) is a legal document that is issued by the bank that acts as an irrevocable guarantee in making payment to a beneficiary. When an individual fails to perform the required obligations, the bank pays.

Types of Letters of Credit

  • A revocable letter of credit
  • An irrevocable letter of credit
  • A standby letter of credit
  • Revolving letter of credit

 

Pre-shipment / Packing Credit

‘Pre-shipment / Packing Credit’ means any loan or advance granted or any other credit provided by a bank to an exporter for financing the purchase, processing, manufacturing or packing of goods prior to shipment / working capital expenses towards rendering of services on the basis of letter of credit opened in his favour or in favour of some other person, by an overseas buyer or a confirmed and irrevocable order for the export of goods / services from India or any other evidence of an order for export from India having been placed on the exporter or some other person, unless lodgement of export orders or letter of credit with the bank has been waived.

The salient features of packing credit are

  • Self-liquidating
  • Credit to buy goods
  • Covers manufacturing expenses
  • A lower rate of interest
  • Flexible terms of credit

 

Bill discounting

Bill Discounting is an invoice business loan. It helps small businesses to obtain funds almost immediately based on invoices which are already present as collateral. The invoice can be sold at up to 90% of the invoice value to the discounting agency and cash can be obtained.

 

Required Documents

PROPRIETORSHIP
  • 3 years ITR .computation and Balance sheet
  • One year bank statement (S B a/c, C A a/c, O D a/c )
  • local body licenses/ GST regi, MSME, Pollution, food and safety, export and import license (submit if you have)
  • Loan sanction letter
  • Loan track (starting to till date)
  • Business profile
  • Rental agreement (shop , godown )
  • Other loan details, loan track, loan closing letter
  • Photo , Pan card ,election card , Driving License Ration card (h/w)
  • GST monthly return(april2019 to till months)
  • Two year GST. Annual return
COMPANY/ PARTNERSHIP/TRUST
  • Company memorandum and articles / Partnership deed/ trust deed
  • Registration certificate
  • pan card
  • Three years ITR ,computation and Balance sheet
  • One year bank statement (S B a/c, C A a/c, O D a/c )
  • Local body licenses/ GST regi, MSME, Pollution, food and safety, export and import licence……etc (submit if you have)
  • Business profile
  • GST Annual return (2018 march – 2019 march)
  • GST Monthly return (2019 Aril to till month)
  • Two year ITR, Computation, one year bank statement(Directors/ partners/ trust)
  • Directors: other loan details, loan track, loan closing letter
  • Photo , Pan card ,election card , Driving License (directors/ partners/ trust)
  • Loan sanction letter
  • Term loan statements(starting to till date)

Property details

  • Document of the property
  • Prior documents
  • Encumbrance certificate for last 30 years
  • Possession and non attachment certificate
  • land tax receipt
  • Building tax receipt
  • Location sketch and certificate
  • Approved Building plan and permit

 

Features

All loans are not created equal, Loans has become a great option for people to use.

Faster Loan

Cochin Financial Services helps you to get the loan faster than any other consultants! Starting from document prepartion, our main motto is to get you the money!

Choose amount

All charges are communicated up front in writing along with the loan quotation, and let us know how much money you want and we set strategy accordingly.

Enjoy the best rates

Our loan rates and charges are very attractive. We always get you loan for the best interest rates in the market. Its upto us to get you a hassle free loan.

Decide your tenure

As our loan rates and charges are very attractive, we help the clients to workout on tenure which never become a burden for them. We works for you.

 

Loan Eligibility

To help the exporter complete the export order, packing credit loan can be extended by the bank. Packing credit is a type of bank loan for export business provided to an exporter for financing the purchase, processing, manufacturing or packing of goods required to export from India. Packing credit is a form of working capital loan provided on the basis of export order from an overseas buyer. Packing credit loan can be extended by the bank based on the time required to complete the export order. If a packing credit loan is not adjusted by submission of export documents within 360 days from the date of release of the loan, a higher interest rate may be chargeable.

Post shipment loans can be sanctioned for an exporter from the date of shipment of goods or services to the date of realization of payment from the exporter. Therefore, the exporter would not have to wait for payment from the customer and can obtain funds from the bank on the shipment of the goods or service. Post shipment loans can be of three types:

  • Export bills purchasing or discounting or negotiating
  • Loan against export bills for collection
  • Loan against duty drawback receivable from the Government.

 

Frequently Ask Questions

If you have a question that deals with clients, customers or the public in general, there is bound to be a need for the FAQ page.

Your bank will assess your repayment capacity while deciding the home loan eligibility. Repayment capacity is based on your monthly disposable / surplus income, (which in turn is based on factors such as total monthly income / surplus less monthly expenses) and other factors like spouse’s income, assets, liabilities, stability of income etc. The main concern of the bank is to make sure that you comfortably repay the loan on time and ensure end use. The higher the monthly disposable income, higher will be the amount you will be eligible for loan. Typically a bank assumes that about 55-60 % of your monthly disposable / surplus income is available for repayment of loan. However, some banks calculate the income available for EMI payments based on an individual’s gross income and not on his disposable income.

The amount of the loan depends on the tenure of the loan and the rate of interest also as these variables determine your monthly outgo / outflow which in turn depends on your disposable income.

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You repay the loan in Equated Monthly Installments (EMIs) comprising both principal and interest. Repayment by way of EMI starts from the month following the month in which you take full disbursement.

The longer the tenure of the loan, the lesser will be your monthly EMI outflow. Shorter tenures mean greater EMI burden, but your loan is repaid faster. If you have a short-term cash flow mismatch, your bank may increase the tenure of the loan, and your EMI burden comes down. But longer tenures mean payment of larger interest towards the loan and make it more expensive.

Yes, most banks allow you to repay the loan ahead of schedule by making lump sum payments. However, many banks charge early repayment penalties up to 2-3% of the principal amount outstanding. Prepayment penalty may vary according to the reasons and source of funds – if you obtain a loan from another bank for pre-payment the charges are usually higher than when you pay from your own sources. However, you may credit more than your EMI amount into your loan account on a periodic basis and bring down your interest burden as and when funds are available with you. Most banks do not charge a pre-payment penalty if you deposit more than your EMI payable on a periodic basis. Please check such stipulations while availing the loan.

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