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A. Preamble As a part of overall strategy of export promotion measures, our Bank has introduced a scheme called CUB Gold Card Scheme for Exporters to ensure expeditious and timely provision of financial assistance to the export sector at competitive rates of interest and remove procedural hassles. The Scheme aims to further simplify access to bank credit by exporter’s especially small and medium exporters and make it borrower
friendly in terms of procedure and credit terms. The Scheme further envisages certain additional benefits based on the record of performance of the exporters. All credit worthy exporters, including those in small and medium sectors with good track record will te eligible for issue of Gold Card as per the criteria laid down by our Bank. B. Objectives of the Scheme 1. Depending on their track record and credit worthiness Gold Card
holding exporters will be granted better terms of credit including rates of interest than those extended to other exporters by the bank. 2. Application for credit will be processed at norms simpler and under a process faster than for other exporters 3. The. ‘in-principle’ limits will be sanctioned for a period of 3 years with a provision for automatic renewal subject to fulfillment of the terms and conditions of sanction. 4. Gold Cardholders will be given preference for grant of packing credit in foreign currency (PCFC) subject to the availability of foreign currency funds. 5. The charges schedule and fee structure in respect of services provided to exporters under the Scheme will be relatively lower than those provided to other exporters. C. Eligibility Criteria Good track record and not the turnover are the basic criteria for eligibility under the Scheme. Thus the eligibility criteria for exporters for consideration under the Scheme are as under: 1. The accounts have been classified as Standard continuously for a period of three years. 2. The account is rated as ‘very low’ or ‘low’ risk as per our Bank’s rating policy 3. The names of the exporter, the promoters and guarantors should not be in the Specific Approval List (SAL) of ECGC and/or in the defaulter’s list/ caution list of the Reserve Bank of India. 4. The exporter should satisfy the special rating criteria of our Bank specified for awarding the Gold Card. 5.When ever new accounts are taken over from other banks where
the exporters are already having Gold Cards we may also extend Gold Card of our bank. However after the end of the financial year the new account holder should satisfy our terms for issue of Gold Card. D. The benefits and concessions I Sanctioning credit a. The sanction and renewal of the limits under the Scheme will be based on a simplified procedure. A simplified form
for working capitol credit facilities developed exclusively for the Gold Card Scheme-Exporters by Indian Banks’ Association will be adopted. The specimen form is given in Annexure: 1. b. The ‘in-principle’ limits will be sanctioned for a period of three years with a provision for automatic renewal subject to fulfillment of the terms and conditions of the sanction. However a review of the account will be made annually. If the exporter slips from the eligibility criteria then the facility of
‘in-principle’ sanction for three years will stand cancelled with immediate effect and the Gold Card will be withdrawn. The account will thereafter attract normal rate of interest for export credit and other charges prevailing with the Bank. c. Subject to the availability of funds Exporters under the Scheme will have priority over non-export borrowers with regard to granting Packing Credit Loans In Foreign Currency (PCFC) against FCNR (B) funds d. The time frame for disposal of applications received for sanction under the scheme is stipulated as follows: For disposal of fresh applications 25 days Renewal of limits 15 days Sanction of ad hoc limits 07
days e. A Standby limit of 20% of the assessed limit will be made additionally available to facilitate urgent credit needs for executing sudden orders 2. Rate of Interest a. The applicable rate of interest to be charged for the eligible period under the Gold Card Scheme will be as under:
Pre-shipment credit |
Post-shipment credit |
In Indian Rupees Rate % p.a. |
In Foreign currency Rate % p.a. |
In Indian Rupees Rate % p.a. |
In Foreign currency Rate % p.a. |
1.00% p.a. lesser than the lowest rate applicable for export credit with the Bank. |
LIBOR+0.75% p.a. as fixed by RBI |
0.75% p.a. lesser than the lowest rate applicable for export credit with the Bank |
LIBOR+0.75% p.a. as fixed by RBI |
3.Service charges: The charges schedule and fee-structure in respect of services provided by our Bank to exporters under the Scheme will be 75% of charges levied to other exporters. 4. Tenure The Gold Card will be issued for a period of 3 years and will be automatically renewed for a further period of three years unless the
Exporter under the Scheme ceases to get benefits as above. For further details the exporter are requested to contact the branch of our bank where they avail the export finance | 
