Wednesday, September 19, 2018 New York : London: India: Tokyo:

Short -Term Trade Credits


As permitted by the Reserve Bank of India in their ECB guidelines, the importers are eligible to avail the supplier’s credit and buyer’s credit facilities for import of capital goods and raw materials (opex), to benefit from lower interest cost on the trade credits availed.

Trade credits can be availed for a period not exceeding 360 days from the date of shipment in case of opex and the trade credit for import of capital goods can be availed for a maximum of 1080 days from the shipment date.

The Reserve Bank of India has stipulated an all-in-cost ceiling for maturities of 1 year and beyond 1 year.

Suppliers’ credit can be structured by establishing LC with usance period of 180 or 360 days, and credit disbursed by the offshore lender shall be claimed from the LC opening Bank after the usance period, while the supplier gets paid on sight basis on the date of negotiation of documents under the L/c after shipment.

Buyer’s credit can be availed from the offshore lender against the retirement of sight LC and the credit can be availed and rolled over upto the maximum period from the shipment date as indicated above.

The short-term trade credits form part of short-term liabilities under the external debt of the country and the central bank monitors the position periodically to ensure that the short term foreign currency liabilities does not exceed a percentage of the total debt and a specified percentage of forex reserves of the country.

We have a separate desk for arrangement of short-term trade credit facilities for our various clients at highly competitive rates.

We have established good relationship with more than 150 offshore Banks( foreign Bank branches and branches of Indian Banks) and we can arrange good quotes to meet the  requirement of our esteemed clients.

We shall offer our services from start-to-finish to ensure smooth completion of your transaction/s.

The following employees from our side will be in regular contact with your officials for doing the needful as and when the need arsies.

1)   Praveen Kumar Palvai    :      022/2269  6186 - 084548 46185 / 099873 42236

2)   Rohit Jain                     :      022/2262  1826 - 09321919129 / 084548 46186

3)   Dipesh Gori                  :      022/ 2265 9362 - 9322094702

4)   Kartik Sarma                :      022/ 2262 1826 - 9167596479


Indicative Buyer's credit Quote :

Details of latest Quote obtained


No. of Days


$ 5 Mln+

$1 Mln - $5 Mln

$5 Lac - $1 Mln

$1 Lac - $5 Lac

$ 25K - $1 Lac

90 Days

3M Libor plus

30 bps or below

30-36 bps

36-40 bps

40-49 bps

50-65 bps

180 Days

6M Libor plus

 30 bps or below

30-36 bps

36-40 bps

40-49 bps

50-65 bps

360 Days

12M Libor plus

28-30 bps

28-34 bps

34-38 bps

40-46  bps

48-56 bps


Useful following  link for short-term trade services, 

Indicative Spot Rates


Holiday Calendar List

Forwards/Futures Rates

WHT Tax Rates(Tax rates applicable in India under DTAA Agreement)

Login Form