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Are you an Exporter earning net profit as also your account is classified as “Standard” continuously for a period of three consecutive years?

If yes, you are now eligible for availing benefits under Gold Card Scheme of the Bank provided Risk Rating of your account falls between AB1 to AB4 (a rating assigned to all borrowal accounts based on the scoring under various parameters).

Salient features of the Scheme

1. A Gold Card under the Scheme may be issued to all eligible exporters including those in the small and medium sectors who satisfy the above laid down conditions.

• In case of switch over accounts if the exporter/s is/are enjoying the status of “Gold Card” from the existing banker/s, they/he or she may be extended the same status by the bank.

2. Proposals Prohibited

• The scheme will not be applicable to those exporters who are blacklisted by ECGC or included in RBI’s defaulter list/ caution list or making losses for the past 3 years or having overdue export bills over 10% of the current Year’s turnover.

• Loans against commodities, the possession/ production of which are prohibited by the law of land.

3. Fixation of Credit Limit

• The sanction and renewal/enhancement of need based limit/s under the scheme will be in terms of lending policy of the Bank, taking in the account the anticipated export turnover and track record of the concerned exporter/s.

• It is ensured that Packing Credit (Foreign Currency) requirement of the Gold card holder are met by giving them priority over non-export borrowers with regard to granting loan against FCNR (B) funds.

• Bank will consider granting term loans in foreign currency in deserving cases out of its FCNR(B), RFC etc. funds. (Bank will not grant such loans from its overseas borrowings under the 25% window or overseas lines of credit).

• The limits will be sanctioned for a period of 3 years with a provision for automatic renewal subject to fulfillment of the terms and conditions of sanction.

• A stand-by limit of 20% of the assessed limit may be additionally made available to facilitate urgent credit needs for executing sudden orders. In the case of exporters of seasonal commodities, the peak and off-peak levels may be appropriately specified. The stand-by limit, subject to documentary evidence justifying the need for additional requirements and on satisfaction of the concerned branch manager, can be extended to gold card customers. The same should immediately be reported to the sanctioning authority under a copy to Credit Monitoring Cell, Head office. The requisite documentation formalities should also be completed prior to release of Stand-by limit.

• Drawn from IBA Format and customized to Bank’s requirement, a simplified application form is available with the Branches across the country.

• In case of unanticipated export orders, norms for inventory may be relaxed, taking into account size and nature of the export order.

• The exporter’s record of performance will be reviewed annually with a view to pass on the benefit of better terms and conditions including rate of interest.

• Enhancement of limit/s can be considered at the time of review of the account based on latest available audited financial statements and actual sales recorded by the borrowers’ vis-à-vis projections/estimation accepted by the bank.

4. Time frame for disposal of proposals

The maximum time frame for disposal of application including take over of accounts:

5. Rate of Interest

• The minimum rate of interest for preshipment loan (in rupees) up to 180 days in case of customer rated AB-1 & AB-2 will be 8.50 %, where as in case of customer rated AB-3 & AB-4 will be 8.75 %. Rate of interest for advances of other maturity as also post shipment credit is also very low as compared to other customers.

• The interest rate of FCNR (B) Loans should not exceed LIBOR + 1.00 percent per annum. In case sufficient funds in the loan currency are not available with the bank to lend to the exporters at a particular time, service charge at flat rate of 0.1 percent may be charged by the bank on the inter-bank foreign currency borrowings for the purpose. Such loans also may be extended after obtaining specific permission from General Manager (Foreign Department) Head Office.

6. Service Charges

• 10% concession will be permitted on normal charges over DD/MT/TT.

• 10% concession will be permitted on normal charges for issuing Inland L/C/B.G

• 10% concession will be permitted on normal charges over Processing Fees.

• Documentation/Mortgage charges will be realised as per actual expenses.

7. ECGC Guarantee

Gold Card holders, in view of their credit worthiness, may be considered by the bank for exemption from ECGC guarantee under the Packing Credit Guarantee-Sectoral scheme of ECGC in deserving cases. The General Manager (Credit) is authorized to consider such relaxation under intimation to Head Office, Foreign Department.

8. Tenure of the Gold Card Status

The Gold Card Status to eligible exporters will be provided for a period of 3 years and will be automatically renewed for a further period of three years unless there are adverse features/irregularities in the account. In case of any misuse of the same or observance of any violation of the terms and conditions, the bank will have the right to cancel/withdraw the benefits.

9. Additional Facility

• Banks may ensure that the PCFC requirements of the Gold Card holders are met by giving them priority over non-export borrowers with regard to granting loans against FCNR (B) funds etc.

• The facility of further value addition to the Bank’s Card holders through supplementary services like ATM, Debit card etc will be provided after implementation of CBS and issuance of card in proper form will be considered at that time.

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