RBI extends loan tenures for exporters to 10 years

MUMBAI, May 21 (PTI): The Reserve Bank of India (RBI) Wednesday allowed banks to provide loans with tenures of up to 10 years to exporters to help them ensure capital flows to fulfil long-term contracts.

Existing norms allow banks to give loans for up to one year only.

"In view of requests received from exporters, it has been decided to permit banks to allow exporters having a minimum of three years' satisfactory track record to receive long-term export advance up to a maximum tenor of 10 years to be utilised for execution of long-term supply contracts for export of goods," RBI said in a notification.