The Reserve Bank of India (RBI) has introduced special relief measures to help exporters who are struggling because of higher global tariffs and trade disruptions. These measures will:
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Make it easier for exporters to borrow money
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Help them delay loan repayments
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Give banks more flexibility in handling export-related loans
These measures are called “RBI Trade Relief Measures, 2025.”. These rules take effect immediately.
How These Measures Will Help Exporters?
1) Easier loan repayments –
- If an exporter has a term loan, they don’t have to make any loan payments from 1 September to 31 December 2025.
- For working-capital loans like cash credit or overdraft, interest will still accumulate during October to December, but the RBI has said this interest must be calculated using simple interest instead of compound interest, which makes it cheaper.
- Exporters don’t have to pay this interest right away. Instead, the unpaid interest can be converted into a separate small loan that they can repay later, anytime between 1 April and 30 September 2026. Overall, this gives exporters extra time and reduces pressure on their cash flow when business is slow.
2) Easier access to working capital –
- Banks can recalculate the drawing power—the amount a business is allowed to take from its working-capital loan—in a more flexible and generous way. This means they can lower the margin requirement or take another look at what the exporter actually needs. As a result, the business may be allowed to borrow more money, giving exporters easier access to funds when they need it.
3) More time for export-related loans –
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RBI has increased the maximum period for pre-shipment and post-shipment export credit from 270 days to 450 days. This gives exporters more time to produce and ship goods before paying back loans.
4) Help for exporters who couldn’t ship goods –
- If an exporter has taken packing credit (a loan used to prepare goods for export) but is unable to ship the goods before 31 August 2025, banks can now allow the exporter to repay the loan using money from domestic sales of those goods or from the proceeds of another export order. This flexibility helps prevent the loan from being classified as a bad debt simply because the shipment was delayed.
What are the conditions an exporter must meet to qualify for this relief?
1) To qualify, exporters must belong to one of the 20 sectors, including:
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fisheries
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chemicals
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plastics & rubber
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textiles & leather
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precious metals & stones
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steel, aluminium
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machinery
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electrical equipment
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furniture
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vehicles
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nuclear reactors, etc.
Banks that lend to these exporters will also benefit.
2) Exporters must have export loans outstanding.
3) must be classified as standard assets (not bad loans) as of 31 August 2025.
Banks may need to make 5% extra provision for these loans, which means setting aside some money in case exporters can’t repay. But experts say this will not hurt banks’ profits too much. Banks also need to create a public policy explaining who can get relief, what conditions apply and how decisions will be made.
RBI these moves are meant to ease financial pressure, keep export businesses running, and help India stay competitive in global trade.
