The Presidents/ CEOs,

All Banks.

Dear Sirs /Madam,

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

Please refer to IH & SMEFD Circular No. 05 dated January 31, 2013 on the captioned subject.

2. It has been decided that rate of refinance under the Export Finance Scheme effective from April 01, 2013 and onward till further instructions shall be 8.40% p.a. The commercial banks shall ensure that where financing facilities are extended by them to the exporters for availing refinance facilities under the EFS, their maximum margin/spread does not exceed 1% p.a. The revised markup rate is not applicable on currently outstanding loans availed under EFS.
3. 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.
4. Other instructions on the subject shall remain unchanged.

Please acknowledge receipt.