Financial Calculations & Valuation
Beginner
Export Packing Credit (EPC / PCFC) & Interest Equalization Subsidy Calculator in Python
Calculate Pre-Shipment Export Packing Credit (EPC) drawing limit against FOB order value and net interest cost after MSME Interest Equalization subvention in Python.
#numpy
Problem Statement
Exporters financing raw material procurement against confirmed export orders/LCs need to compute allowable Pre-Shipment Packing Credit (after domestic profit & FOB margin deduction) and net effective interest after RBI/DGFT Interest Equalization subvention.
Formula / Core Logic
Allowable_EPC = Export_Order_FOB * (1 - Profit_Margin_Pct) * (1 - Bank_Margin_Pct)
Net_Rate = Base_EPC_Rate - Subvention_Rate
Interest_Outflow = Allowable_EPC * (Net_Rate / 100) * (Tenor_Days / 365)
Installation
pip install numpy
export-packing-credit-pcfc-interest-subvention-calculator-python.py
def calculate_export_packing_credit(fob_order_val, profit_margin_pct=10.0, bank_margin_pct=15.0, base_rate_pa=8.75, subvention_pa=2.0, tenor_days=90):
cost_of_production = fob_order_val * (1.0 - profit_margin_pct / 100.0)
epc_disbursement = cost_of_production * (1.0 - bank_margin_pct / 100.0)
effective_rate = max(0.0, base_rate_pa - subvention_pa)
interest_cost = epc_disbursement * (effective_rate / 100.0) * (tenor_days / 365.0)
interest_saved = epc_disbursement * (subvention_pa / 100.0) * (tenor_days / 365.0)
return {
'FOB_Order_Value': round(fob_order_val, 2),
'Allowable_EPC_Limit': round(epc_disbursement, 2),
'Effective_Interest_Rate_Pct': round(effective_rate, 2),
'Net_Interest_Payable': round(interest_cost, 2),
'Subvention_Subsidy_Saved': round(interest_saved, 2)
}
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Buy Full Bundle on Gumroad ($19) →Frequently Asked Questions
Q: Why does the bank deduct profit margin from the FOB order value?
Pre-shipment Packing Credit is strictly meant to finance input raw materials and manufacturing wages, not the exporter's profit component.