Packing Credit== Exports Reloaded, must Read

PACKING credit is also known as pre-shipment credit in India and comprises a part of export credit. This is a bank loan which is commonly extended to an exporter for the specific purpose of financing the purshase, processing, manufacturing or packing of goods prior to their shipment. These loans are given on the basis of a letter of credit opened in favour of the exporter by an overseas buyer. There should be a confirmed and irrevocable order for the export of goods from the producing country. The bank also accepts any other evidence of an export order from the country concerned having been placed on the exporter. Export credit at times are offered at concessional rates and also refinanced by specialised trade finance institutions.