Buyer’s Credit

Code of Conduct Code of Conduct

IDBI Bank Buyers Credit Services


Buyer's Credit availed by the importers should be need based and tenure of the Buyers’ Credit should be within their normal operating cycle. Rollovers of the Buyer's Credit should be permitted only after seeking justification from the borrower or independently assessing the requirement for the same. The transaction should be for imports into India. Short Term Trade Credit is not permitted (a) for any Merchanting trade /Intermediary trade transactions, (b) for financing advance payment for imports and (c) financing purchase by entities in Domestic Tariff Area (DTA) from units in Special Economic Zone (SEZ)/ 100% Export Oriented Units (EOU). Import should be permissible under the current Foreign Trade Policy.