IOB EXPO GOLD CARD FOR EXPORTERS
Indian Overseas Bank has formulated Gold Card Scheme for its exporter clients based on the scheme drawn up by Reserve Bank of India. The scheme aims to ensure easy availability of export credit on better terms to credit worthy exporters with good track record. The Gold Card to be offered by IOB will be known as "IOB Expo Gold Card" .The salient features of the scheme are as under :-
Eligibility under the Scheme
- Exporters with bank's credit rating of A+ or A will be eligible under the scheme.
- Exporters whose accounts have been classified as "Standard" continuously for a period of three years and where 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 included in Bank's list of watch category accounts. Exporters who have incurred losses during the immediately preceding 3 years, or having overdue export bills in excess of 10 per cent of current year's turnover, will not be eligible.
Fixation of Credit Limit
- Line of Credit 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.
- Subject to availability of Foreign Currency, efforts will be made to meet the PCFC requirements of the Gold Card holders by giving them priority over other export borrowers. Likewise, Bank will also consider providing foreign currency term loans to Gold Card Holder 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 a simplified application form – see attachment.
- The performance of the exporters will 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to decide whether benefits of better terms and conditions given to Gold Card Holders are to be continued/ amended / withdrawn.
Rate of Interest /Service Charges
- Relaxation in interest rates upto a maximum of 0.25% .on rupee export credit based on 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. This will not apply to overdue bills.
- 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 a flat rate of 0.10% for each transaction. Bank will also consider providing foreign currency term loans to these exporters on priority basis. Taxes will be extra. Mark up over LIBOR is subject to change.
The Gold Card will be issued normally for a period of 3 years and will be automatically renewed for a further period of three years unless there are adverse features /irregularities in the account. Further, bank will have the 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.
For further details , exporters are requested to contact IOB branches.