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Exporting your firm's products or services can provide you a valuable opportunity for growth.
Export Credit Refinancing (ECR)
Export Credit Refinancing (ECR)scheme provides short-term pre- and post-shipment financing to direct or indirect exporters. It is available to manufacturer or trading company with ECR credit line duly established with any participating commercial bank.
A pre-shipment ECR facility facilitates purchases of materials and overhead expenses while post-shipment ECR provides financing to direct exporter upon shipment.
| Pre-Shipment | Post-Shipment | ||
| Direct Exporter | Available | Eligible for products on credit or usance terms (minimun 30 days) | |
| Indirect Exporter | Available | Not available | |
| Purpose of Financing | Finance the purchase of domestic inputs and overhead expenses | ||
| Methods of Financing |
Order-Based Method Financing is agains the export order received from overseas buyer or direct exporter |
Certificate of Performance Method Financing is against certificate of performance (CP) issued by EXIM Bank |
Finance against export document (Bill Discounting) |
| Margin of Financing |
Order-Based Method Up toa maximum of 95% of value of export order or ECR Domestic Letter of Credit / ECR Domestic Purchase order / local purchase order |
Certificate of Performance Financing is against certificate of performance (CP) issued by EXIM Bank |
Up to a maximum of 100% of export bill value. Subject to availability of ECR credit limit with the commercial bank and EXIM Bank's administrative limit |
| Minimum Amount | RM10,000 | RM10,000 | |
| Tenure |
Up to a maximum of 4 months. A longer tenure may be extended depending on products |
Up to maximum of 6 months | |
| Interest Rate | EXIM Bank preferential interest rate. Currently 4.5%, subject to change | ||
| Eligible Exporter |
Direct Exporter : - Manufacturing Company - Agricultural products producer - Trading company Indirect Exporter (supplier of domestic input) |
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| Repayment |
Upon receipt of: Direct Exporter - export proceeds; or - post shipment proceeds Indirect Exporter - proceeds from direct exporter. |
Upon: -receipt of export proceeds; or - maturity of the post-shipment bill whichever is earlier. |
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