PNB EXPO GOLD CARD FOR EXPORTERS

Punjab National Bank has formulated Gold Card Scheme for its exporter clients based on the scheme drawn up by Reserve Bank of India. The scheme proposes to ensure easy availability of export credit on best terms to credit worthy exporters with good track record. The card to be offered by PNB will be known as ‘PNB Expo Gold Card’. The salient features of the scheme are as under: -

Eligibility under the Scheme

• Exporters with minimum rating of ‘BB’ as per risk rating module or ‘A’ based on seven pricing parameters will be eligible under this scheme.
• Exporters whose accounts have been classified as ‘Standard’ continuously for a period of three years and there are no irregularities/adverse features in the conduct of the accounts will be considered.
• The scheme will not be applicable to those exporters who are blacklisted by ECGC or included in RBI’s defaulter’s list/caution list or making losses for the past 3 years or having overdue export bills in excess of 10 per cent of the current year’s turnover.
• In order to recognize exporters undertaking exports on collection basis, it has been decided that they will also be considered for grant of PNB Expo Gold Card under the above scheme provided they have been dealing with our bank for a period of atleast three years.

Fixation of Credit Limit

• In-principle limits will be sanctioned for a period of three years with a provision for automatic renewal under this scheme subject to fulfilment of the terms and conditions of sanction.
• Efforts will be made to meet PCFC requirements of the Gold Card holders by giving them priority over non-export borrowers. Bank will also consider providing foreign currency term loans to Gold Card Holders on priority basis.
• The maximum time frame for disposal of applications received for sanction of export credit under the scheme will be as under: -

  For disposal of fresh applications 25 days
  Renewal/ Review of limits 15 days
  Sanction of ad hoc limits 07 days

• A stand-by limit of 20% of the assessed limit can be additionally made available to meet urgent credit needs of Gold Card Holders.
• It has been decided that Gold Card Holders will submit their request for sanction/renewal of credit limits in the simplified application form (enclosed).
• The performance of the exporters is to be reviewed on yearly basis vis-à-vis their projections with a view to decide whether benefits of better terms and conditions given to Gold Card Holder are to be continued/amended/withdrawn.

Rate of Interest/Service Charges

• Relaxation in interest rates upto 0.25% on rupee export credit based on the credit ratings of the exporters. The concessional rate of interest applicable upto 90 days on post-shipment rupee export credit will be extended upto 365 days.
• Bank will offer discount of 10% in charges and fee structure for various services/transactions.
• Export credit in foreign currency will be provided on priority basis at LIBOR + 0.75% per annum with service charges at the flat rate of 0.1% for each disbursement. Bank will also consider providing foreign currency term loans to these exporters on priority basis.

Tenure

• The card will be issued for 3 years and will be renewed automatically for a further period of 3 years unless there are adverse features/irregularities in the account. Further, bank will have right to recall the card at any time in case of any misuse of the card or observance of any violation of the terms and conditions.

Download Application Form (in doc Format)

For further details, exporters are requested to contact PNB branches.