In a major relief to exporters, the Reserve Bank of India has extended the time period for concessional interest rates for overseas shipments.
The rupee export credit interest rate scheme, under which exporters get loans at 250 basis points lower than the prime lending rate, has been extended till April 30, 2009. It was to expire by this month-end.
With the extension, the ceiling on interest rates on pre-shipment rupee export credit up to 180 days and post-shipment rupee export credit up to 90 days are pegged at Benchmark Prime Lending Rate (BPLR) minus 2.5 per cent.
With several sectors putting up a dismal show, the overall export growth in September FY09 slipped to a little more than 10 per cent from 26.9 per cent in August.
The country’s exports during the first five months of this financial year grew 35.1 per cent.
