EPC full form in banking is Export Packing Credit. It is a short-term financing facility provided by banks to exporters in India to help them finance the purchase, processing, and packing of goods for export. This credit is essential for exporters to meet their working capital needs during the pre-shipment phase, ensuring they can prepare and dispatch goods on time.

How Export Packing Credit Works?

Export Packing Credit is typically given in the form of a short-term loan that helps exporters meet the expenses involved in the pre-shipment phase, such as procuring raw materials, manufacturing goods, and packing them for shipment. The credit is generally provided for a period of up to 180 days, depending on the nature of the export contract and the policies of the bank.

Benefits of Export Packing Credit

• Working Capital Support: EPC helps exporters manage the working capital required to produce, process, and pack goods.
• Competitive Advantage: It ensures timely procurement and preparation of goods, allowing exporters to meet deadlines and maintain competitive pricing.
• Flexible Repayment: Repayment terms are often linked to the receipt of export proceeds, making it more convenient for exporters.

Eligibility Criteria

To be eligible for EPC, exporters must meet the following criteria:

• Exporter Status: They must be a registered exporter with the Directorate General of Foreign Trade (DGFT).
• Financial Health: Exporters must demonstrate financial stability and repayment ability.
• Export Order: Exporters must have a confirmed export order or a letter of credit.