Exporters get extension of low interest rate till June

The ceilings on interest rates on pre-shipment and post-shipment rupee-export credit were stipulated at benchmark prime lending rate minus 2.5 per cent.As per the direction issued by the central bank earlier, the benefit was valid up to April 30. “It has been decided to extend the validity...up to June 30,” RBI said.

The move assumes significance as exporters are still facing demand problem in the major Western markets.Exports after falling for consecutive 13 months since October 2008 turned positive in November 2009.