The full form of EPC in banking, specifically related to export finance, is Export Packing Credit.
This type of credit is a pre-shipment finance facility offered by banks to exporters. It helps them finance the purchase, processing, and packing of goods intended for export.
Here's a breakdown:
- Export: Relating to goods or services sold to a foreign country.
- Packing: The process of preparing goods for shipment, including packaging, labeling, and other necessary steps.
- Credit: A financial arrangement where a bank provides funds to a borrower, with the understanding that the borrower will repay the funds with interest over a specified period.
Therefore, Export Packing Credit provides the necessary financial resources to exporters during the crucial pre-shipment phase, ensuring they can fulfill their export orders.
