The Presidents / CEOs,
All Banks.

Dear Sirs /Madam,

Revision of Financing Rates under the Export Finance Scheme (EFS)

Please refer to SMEFD Circular No. 17 dated December 31, 2010 on the captioned subject.

2.            It has been decided that rate of refinance under the Export Finance Scheme applicable from September 10, 2012 and onward till further instructions shall be 8.50% p.a. The commercial banks shall ensure that where financing facilities are extended by them to the exporters for availing refinance facilities under the Export Finance Scheme, their maximum margin/spread does not exceed 1% p.a.

3.            The financing facilities under Part-B (Export Sales) of the Scheme for financing Locally Manufactured Machinery shall also attract similar mark up rate structure.

4.            The reimbursement of mark-up rate benefit to exporters, on excess performance under Part-II of the Scheme, as specified in SMEFD Circular No.15 dated October 31, 2009, will be adjusted accordingly keeping in view the revised mark-up rates.

5.            Other instructions on the subject shall remain unchanged.