Raising Trade Credits for imports in India

Foreign Exchange

Trade Credits (TC) denote the credits extended by the overseas supplier, bank, financial institution and other permitted recognised lenders for maturity, for imports of capital/non-capital goods permissible under the Foreign Trade Policy of the Government of India. Depending on the source of finance, such TCs include suppliers’ credit and buyers’ credit from recognised lenders. The…

Updated guidelines on raising loans through External Commercial Borrowing (ECB)

Foreign Exchange

The revised guidelines on External Commercial Borrowing are as per the updated circular of RBI as of December 22, 2023. External Commercial Borrowings are commercial loans raised by eligible resident entities from recognised non-resident entities and should conform to parameters such as minimum maturity, permitted and non-permitted end-uses, maximum all-in-cost ceiling, etc. The framework for…