Trade credit for imports permits importers to finance capital and non-capital goods subject to currency, tenor, lender and compliance conditions.

Trade credit for imports may finance permitted capital and non-capital goods, including purchases within or between Special Economic Zones. Borrowing may be in foreign currency, Indian Rupees, or another specified currency, within the permissible amount per import transaction. Non-capital goods credit is generally limited to one year and linked to the operating cycle, while capital goods credit may extend to three years. Eligible lenders, cost limits, security, guarantees, authorised dealer bank guarantees, and reporting procedures remain subject to applicable conditions.

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