Key Highlights
- Loan repayments are deferred for standard account holders from 1 September 2025 to 31 December 2025.
- Interest on short‑term credit accrues only on a simple interest basis during the moratorium period.
- Accrued interest may be consolidated into a one‑year Funded Interest Term Loan (FITL) repayable by 30 September 2026.
- Pre‑ and post‑shipment export credit loans now enjoy a maximum tenor of 450 days instead of the prior 270 days.
- Export proceeds must be cashed in and repatriated within 15 months, extended from the previous 9‑month window.
Detailed Insights
The Reserve Bank of India has rolled out a suite of relief measures aimed at easing the credit burden faced by exporters amid global trade slowdown and domestic financial headwinds. Eligible exporters, identified by standard asset classification as of 31 August 2025, can postpone repayment of term loan principal and interest between 1 September 2025 and 31 December 2025. For working‑capital facilities such as cash credit or overdraft, interest will accrue at a simple rate during the moratorium and may subsequently be bundled into a Funded Interest Term Loan (FITL) with a fixed maturity of 30 September 2026.
The extension of export credit tenors to 450 days is applicable only to loans sanctioned before 31 March 2026, providing exporters with a longer payment window. Furthermore, the repatriation window for export proceeds has been broadened to 15 months, while advance payment contracts now allow a shipment deadline of three years instead of one, granting greater contractual flexibility.
These benefits are available across major export sectors, including textiles, leather, chemicals, electrical machinery, and iron & steel. The measures are enforced through banks, NBFCs, cooperative banks, and all‑India financial institutions, ensuring wide accessibility.
Key Concepts
- Moratorium – a temporary suspension of loan repayments granted for a specified period.
- Funded Interest Term Loan (FITL) – a one‑year loan that incorporates accrued interest during a moratorium.
- Export Credit Tenor – the maximum duration permitted for repayment of export‑related credit.
- Repatriation – the process of converting and transferring export proceeds back to the lender’s country.
- Advance Payment Flexibility – extended deadlines for shipment under advance payment contracts.