Export Packing Credit (EPC / PCFC) Calculator
What is my eligible pre-shipment export finance limit and net effective borrowing cost after Interest Equalisation Scheme (IES) subvention subsidies?
Financial Inputs
FOB value of confirmed export purchase orders or irrevocable export LC.
Rupee EPC qualifies for government interest subvention; PCFC provides natural foreign currency hedge.
Days needed from procurement to loading on vessel/aircraft.
Standard export lending rate before government interest equalisation.
Government of India interest subvention rate (typically 3% for MSME manufacturer exporters).
Promoter contribution / haircut on FOB order value (typically 10–20%).
Export Credit Guarantee Corporation insurance premium.
Pre-Shipment Packing Credit Sanctioned
Against your export order of ₹250 Lakh on a 90-day shipment cycle:
Net Effective Borrowing Rate
6.5
Government Interest Subvention Benefit
1,57,192
Total Net Financing Cost
3,93,707
Key Financial Takeaways
- Against your export order of ₹250 Lakh on a 90-day shipment cycle:
- Eligible Pre-Shipment Export Packing Credit is ₹212.5 Lakh (85% of FOB order value).
- Interest Equalisation Scheme (IES) subvention of 3% reduces your effective interest rate from 9.5% down to 6.5% p.a., saving ₹157.19 Thousand in subsidy benefits.
Frequently Asked Questions
What is the Interest Equalisation Scheme (IES) for exporters?
The Interest Equalisation Scheme is a flagship initiative of the Ministry of Commerce and Industry and DGFT. It provides an interest subvention (subsidy) of 3% on pre- and post-shipment rupee export credit to all eligible MSME manufacturer exporters and merchant exporters of specified tariff lines.
When should an exporter choose PCFC instead of Rupee EPC?
If an exporter has a high proportion of imported raw materials or operates in an environment where rupee interest rates are significantly higher than international SOFR rates, borrowing in PCFC (USD/EUR) eliminates currency exchange risk and provides low single-digit financing costs.
Calculators on this platform provide indicative mathematical estimations based on industry-standard financial appraisal models (including Tandon Committee Method II, Nayak Turnover Method, and standard compound amortisation).
They do not constitute a formal facility sanction, credit commitment, or legal advisory from SME PAISA or any partner banking/NBFC institution. Final terms, interest margins, security stipulations, and credit sanctions remain strictly subject to formal credit appraisal, audited balance sheet verification, CMA Data assessment, and risk committee approval by institutional lenders.
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