A Maharashtra based agro products exporter was taking working capital loan in foreign currency at 4% (LIBOR+200 to 250 bps). He wasn’t aware of PCINR/RPC, a packing credit loan available to Indian exporters.
MSMEs in India are eligible for an interest subvention of 5% and forward contracts accrue an annualized premium of 4-4.5% bringing costs down to below zero percent.
We suggested the client to switch from PCFC to PCINR which would entitle him for the interest rate subvention. PCINR loans are initially provided at higher rates of around 8-9% from the bank. We made him aware that he is eligible for getting the interest rate subvention of 5% reducing his borrowing cost from 9% to 4%. In order to further reduce this cost, we advised him to book forwards which would help him save the remaining 4% by receiving forward premiums.
Myforexeye advisors were able to save 4% interest cost that the exporter was paying for his working capital needs and bring down the borrowing costs to zero.
05 Mar 2021 03:06 PM
Myforexeye met an exporter when the USDINR spot was at ?72.40.The forward premium for April was 70 paise.
25 Feb 2021 06:10 PM
Our existing client, a garment exporter had hedged his receivables and sold EURINR forward @85.60 for Dec 2020 but part of their order got cancelled. They were able to cancel the balance contract only on maturity @89.90, booking a loss of INR 4.3 per
24 Dec 2020 12:21 PM
Trade call given my Myforexeye on 10th November was to sell GBPUSD 25th November Futures.
17 Dec 2020 03:06 PM
A Spansih Exporter/Importer was on a trial for the Transaction Processing Outcourcing (TPO) service. His Bank was ICICI bank and was charged a margin of 3 paisa.
19 Nov 2020 12:01 PM
An IT services importer had his account with HDFC bank. He did his forex transactions through HDFC bank. We reached out to him with our services.
06 Oct 2020 11:28 AM
Tirupur based textile exporter had to import Solar Panels from China. Duty was very high. The client had to make a choice regarding funding of the import.