SBP Export Finance Scheme / Export Re Finance ERF-II/ Part 1 Loan/ Part 2 Loan / Loan For Exporters

Export Finance Scheme - An Introduction
The Export Finance Scheme (EFS) is in operation since 1973 with the objective to boost exports
of the country. Under the scheme short term financing facilities are provided to exporters
through Banks for exports of all manufacturing goods especially value added products with the
exception of basic & primary commodities/raw materials as mentioned in negative list issued
vide BPRD Circular No. 5 dated February 24, 2003. It operates in two parts viz Part-I
(Transaction Based) and Part-II (Performance Based).
EFS Part-I:
Part-I is a transaction based facility. The commercial banks provide export
finance to the exporters on case-to-case basis at pre-shipment and/or post-shipment stage
against Firm Export Order/Contract/LCs. The exporter has to show export proceeds
equivalent to the loan amount as performance. The tenor of the facility is up to 180 days
with a rollover option for further 90 days subject to showing performance equivalent to
117% of the borrowed amount in case of availing rollover option.
EFS Part-II:
It is a performance based facility, where entitlement of exporter for revolving
export finance limit is equal to 50% of the export proceeds realized through export of
eligible commodities in the preceding financial year. Export performance of an exporter is
matched annually against total loan availed during the financial year on daily product basis.
The exporter has to realize export receipts from the export of eligible commodities,
excluding any exports for which finance is obtained under Part-I of the Scheme during the
relevant period. The maximum tenor of the loan under Part-II of the scheme is also 180
days which could be rolled over for another 180 days subject to showing at least 70%
shipment of loan availed in initial 180 days.
Mark up Rate:
Currently, mark-up rate under EFS for the borrower stands at 3% (banks get refinance from SBP at 2% (1 % for SMEs) and are permitted a maximum spread of 1% (2% for SMEs).
To further incentivize the financing under EFS (Part-II) the rates under EFS Part-II has been
linked with export performance. Exporters giving higher performance under EFS Part-II can
avail mark up rate rebate ranging from 0.5-1.5 percentage points depending upon the level of
performance achieved.
Eligibility:
Under EFS all major value added commodities exported from Pakistan are eligible
for financing except those mentioned under negative list under the scheme. Therefore, any exporter who meets the lending criteria of a bank can avail financing for eligible commodities.
Facility for Indirect Exporter: EFS Facility is also available to the input suppliers/manufacturers of the Direct Exporter, termed as Indirect Exporter (IDE) on the basis of Standardized PurchaseOrder (SPO) or the Inland Letter of Credit (ILC) to be established by the Direct Exporter against
the particular Export Order/Contract/Letter of Credit. IDE will be eligible to avail finance from
banks against ILC or SPO, to the extent of the amount mentioned therein. The period of
financing by bank to an Indirect Exporter shall be determined as per the terms of the relevant
ILC/SPO, but subject to a maximum of 120 days.
Linkage of Overdue Export Proceeds with EFS:
EFS has been linked with overdue exports
position of an exporter. if overdue export position of an exporter is greater than 5% of the
previous year’s exports shown in EE-1 statements, the exporter would not be entitled to avail
the EFS facility till such time that the overdue position is reduced to the 5% benchmark level.
Exporters availing only the EFS Part-I facility are also required to submit the prescribed EE-1
statements. For this purpose each exporter is required to give a Certificate on a prescribed Form on a six monthly basis by 31st March & September 30, each year; which will remain valid
up to next six months.
#EFS #ERF-II #ExportFinance #SBPScheme #Part-1Loan #Part-2Loan #SBPLoan #ReFinance #ExportRefinance #SBPExportFinanceScheme
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[@foodfoodies7296]

Nice information ✌🏻👏🏻👍🏻

[@mylilworld9054]

Pro explainer 👏👏👍🏻👍🏻

[@AbdulHaseeb-bp9oz]

Outclass Sir

[@fajofati]

ZABARDAST 👍

[@samxpress773]

Well explained

[@gamingartist6956]

👏👏👏

[@tayyabasami8033]

👏🏻👏🏻

[@Muhammadashraf-hb7vp]

AoA plz make DETAILED video on trade finance products which are offered by commercial banks e.g. LDBP, FAFB, FBP etc.

[@BankPortal]

Wasalam
انشاء اللہ

[@Muhammadashraf-hb7vp]

AoA Please make vodeo on SECP Charge types alongwith necessary documenta with practicle examples

[@dk5285]

AoA, Sir what is the latest rates and updates of EFS DISCOUNTING & ERF...PRE , POST PART1 AND PART 2... ?

[@BankPortal]

Watch video
th-cam.com/video/iNeQSiCdtFM/w-d-xo.htmlsi=JQd6pq1b-qQhDrtG

[@syedmuhammadrazashah6237]

Sir Part II ka current interest rate kya ab b 3 % e hai

[@BankPortal]

Rate change ho gaya hai. Watch my video
th-cam.com/video/iNeQSiCdtFM/w-d-xo.htmlsi=0w1pvAb1dKmCFS6-

[@tahasoomro]

Sir , pls make video on outward remittances and what is the purpose of Form M ?

[@BankPortal]

Ok dear

[@awaismazhar3049]

Plz elaborate FE-25 loan as well, pre and post shipment..

[@BankPortal]

Will do some day

[@MuhammadAli-ct2kv]

Sir FE 25 ko bhi explain ker dein

[@BankPortal]

G zaroor Kisi Din IA

[@BankPortal]

G zaroor Kisi Din IA

[@AbdulHaseeb-bp9oz]

EE Stands for ?

[@BankPortal]

Export Earnings

[@RomeelAhmad908]

ya to srf dekh kr translate kya ha

[@themirsahab]

Kak Samj nai ai

[@sanahasnain2783]

117% kia islamic ma increase krni hoti h

[@BankPortal]

For all

[@sanahasnain2783]

Ok