Buyer’s credit is extended as loans for payment of imports into India arranged by the importer from a bank or financial institution outside India for maturity of less than three years.
The Salient features being
- Buyer’s credit is not allowed for import of services
- Buyer’s credit cannot be given for Merchanting Trade transactions/intermediary transaction.
- The tenor of loan should not exceed 1 year for non capital goods whereas the tenor for capital goods should be less than 3 years.
Hong Kong Branch extend the buyers credit services to banks subject to arrangements