Packing Credit (PC)

PC stands for (Export) Packing Credit. It is a short term facility allowed to customers against export L/C and/or firm contract for processing/packing/shipping of goods to be exported. It must be adjusted from proceeds of the relevant exports.


  • This is a mode in export finance.
  • All specific PCs and each PC created under a revolving limit are demand loan by nature.
  • PC amount should not exceed 10% of net FOB value at any point of time or proportionate of raw materials received considering import entitlement/ BTB opened. Total finance (including ABP) against an export L/C should not exceed 90% of the FOB value.
  • Borrower/exporter will be entitled to avail PC upon receipt of accessories under BTB L/C.
  • It is adjusted from the relevant export proceeds.
  • Usually has the tenure of maximum up to 120 days.
  • Primary security: Export L/C/sales contract