Fund the Order Before You Ship It — EPC & PCFC

Both fund the same pre-shipment stage against the same underlying order or LC. EPC is disbursed in Indian Rupees and priced off the bank's MCLR or repo-linked benchmark. PCFC is disbursed in a foreign currency (USD, EUR, GBP, JPY) priced off SOFR, EURIBOR, or SONIA plus a spread, and gives you a natural hedge if your input costs are also in that currency.

No. Interest rates on both rupee export credit and export credit in foreign currency have been deregulated by the RBI — banks price them on a case-to-case basis using their own benchmark (MCLR/repo for EPC, SOFR/EURIBOR/SONIA for PCFC) plus a spread based on your risk profile.

The standard period is up to 180 days. Banks can extend this, usually up to 360 days in total, generally at an additional interest cost of around 2% on the extended portion. If the shipment still hasn't gone out by 360 days, the facility is treated as overdue and PCFC is typically converted to rupees at the prevailing TT selling rate.

The Export Promotion Mission launched a new interest subvention on pre- and post-shipment rupee export credit for eligible MSME manufacturer-exporters from January 2026, applied upfront by your bank on a notified list of tariff lines, capped per exporter per financial year. Items covered under RoDTEP/RoSCTL or PLI, and restricted goods, are typically excluded — we check your HSN code against the current list before you apply.

Yes, provided you hold a valid IEC and can produce a genuine confirmed export order or LC — banks weigh the strength of that order, the buyer's credibility, and your promoters' credit history more heavily than past export turnover for a first facility.

Instead of a fresh sanction for every order, regular exporters with a satisfactory track record can draw against an overall limit without producing an order/LC upfront, on the understanding that the relevant order/LC is submitted within a reasonable period. Drawals are liquidated on a First-In-First-Out basis as export proceeds come in.

If you convert PCFC proceeds to rupees to pay local suppliers, you carry a currency exposure on repayment and typically book a forward contract to cover it. If your input costs are also payable in the same foreign currency, PCFC itself acts as a natural hedge and separate forward cover may not be needed.

The Export Data Processing and Monitoring System is RBI's platform for tracking every export shipment and the credit drawn against it. Your bank uploads and reconciles your EPC/PCFC drawals and shipping documents here — timely, accurate shipment reporting keeps your account in good standing and avoids flags on future facilities.