a) Pre-shipment Credit (Packing Credit): Pre Shipment credit is issued by a financial institution when the seller wants the payment of the goods before shipment. The main objectives behind pre-shipment credit or pre export finance are to enable exporter to: Procure raw materials. Carry out manufacturing process

b) Post-Shipment Credit: it allows any loan or advance granted or any other credit provided by a bank to an exporter of goods or (and) services from India from the date of extending credit after shipment of goods or (and) rendering of services to the date of realization of export proceeds as per the period of realization prescribed by FED, and includes any loan or advance granted to an exporter, in consideration of, or on the security of any duty drawback allowed by the Government from time to time. Banks serves with low interest rate to exporters under post shipment credit based on the guidelines of Reserve Bank.