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IOB EXPO GOLD CARD FOR EXPORTERS

Indian Overseas Bank has formulated Gold Card Scheme for its exporter clients basedon the scheme drawn up by Reserve Bank of India. The scheme aims to ensure easyavailability of export credit on better terms to credit worthy exporters with good track

record. The Gold Card to be offered by IOB will be known as "IOB Expo Gold Card".The salient features of the scheme are as under :-

Eligibility under the Scheme

y Exporters with bank's credit rating of A+ or A will be eligible under the scheme.

y Exporters whose accounts have been classified as "Standard" continuously for aperiod of three years and where there are no irregularities /adverse features inthe conduct of the accounts will be considered.

y The scheme will not be applicable to those exporters who are blacklisted by

ECGC or included in RBI's defaulter's list /caution list or included in Bank's list ofwatch category accounts. Exporters who have incurred losses during theimmediately preceding 3 years, or having overdue export bills in excess of 10 percent of current year's turnover, will not be eligible.

Fixation of Credit Limit

o Line of Credit will be sanctioned for a period of three years with aprovision for automatic renewal under this scheme subject to fulfilment ofthe terms and conditions of sanction.

o Subject to availability of Foreign Currency, efforts will be made to meet the

PCFC requirements of the Gold Card holders by giving them priority overother export borrowers. Likewise, Bank will also consider providing foreigncurrency term loans to Gold Card Holder on priority basis.

o The maximum time frame for disposal of applications received for sanctionof export credit under the scheme will be as under:-

For disposal of fresh applications 25 days

Renewal/Review of limits 15 days

Sanction of ad hoc limits 07 days

y A stand-by limit of 20% of the assessed limit can be additionally made availableto meet urgent credit needs of Gold Card Holders

y It has been decided that Gold Card Holders will submit their request forsanction/renewal of credit limits in a simplified application form see attachment.

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y The performance of the exporters will be reviewed on yearly basis vis--vis theirprojections with a view to decide whether benefits of better terms and conditionsgiven to Gold Card Holders are to be continued/ amended / withdrawn.

Rate of Interest /Service charges

y Relaxation in interest rates upto a maximum of 0.25% .on rupee export creditbased on credit ratings of the exporters. The concessional rate of interestapplicable upto 90 days on post-shipment rupee export credit will be extendedupto 365 days. This will not apply to overdue bills.

y Bank will offer discount of 10% in charges and fee structure for variousservices/transactions.

y Export credit in foreign currency will be provided on priority basis atLIBOR+0.75% per annum with service charges at a flat rate of 0.10% for each

transaction. Bank will also consider providing foreign currency term loans tothese exporters on priority basis. Taxes will be extra. Mark up over LIBOR issubject to change .

The tenure of Card

The Gold Card will be issued normally for a period of 3 years and will be automaticallyrenewed for a further period of three years unless there are adverse features/irregularities in the account. Further, bank will have the right to recall the card at anytime in case of any misuse of the card or observance of any violation of the terms andconditions.

Example

Karachi, December 30 (PPI): State Bank of Pakistan on receiving representations from exporters

associations that banks are not allowing export refinance facilities under Export Finance Scheme due to

non-realization of export proceeds Tuesday decided one time waiver for 90 days shall be allowed for

availing financing under EFS to all exporters whose export proceeds are overdue till date of issuance of

Circular letter. After expiry of 90 days period, export refinance facility under EFS will not be allowed to

those exporters who failed to arrange repatriation of export overdue bills. However, facility will be

restored, automatically by banks, if otherwise in order, as and when