THE INSTITUTIONExport-Import Bank of India is the premier export finance institution of the country, set up in 1982 under the Export-ImportBank of India Act 1981. Government of India launched the institution with a mandate, not just to enhance exports from India,but to integrate the country’s foreign trade and investment with the overall economic growth. Since its inception, Exim Bankof India has been both a catalyst and a key player in the promotion of cross border trade and investment. Commencingoperations as a purveyor of export credit, like other Export Credit Agencies in the world, Exim Bank of India has, over theperiod, evolved into an institution that plays a major role in partnering Indian industries, particularly the Small and MediumEnterprises, in their globalisation efforts, through a wide range of products and services offered at all stages of the businesscycle, starting from import of technology and export product development to export production, export marketing, pre-shipment and post-shipment and overseas investment.THE INITIATIVES Exim Bank of India has been the prime mover in encouraging project exports from India. The Bank provides Indian project exporters with a comprehensive range of services to enhance the prospect of their securing export contracts, particularly those funded by Multilateral Funding Agencies like the World Bank, Asian Development Bank, African Development Bank and European Bank for Reconstruction and Development. The Bank extends lines of credit to overseas financial institutions, foreign governments and their agencies, enabling them to finance imports of goods and services from India on deferred credit terms. Exim Bank’s lines of Credit obviate credit risks for Indian exporters and are of particular relevance to SME exporters. The Bank’s Overseas Investment Finance programme offers a variety of facilities for Indian investments and acquisitions overseas. The facilities include loan to Indian companies for equity participation in overseas ventures, direct equity participation by Exim Bank in the overseas venture and non-funded facilities such as letters of credit and guarantees to facilitate local borrowings by the overseas venture. The Bank provides financial assistance by way of term loans in Indian rupees/foreign currencies for setting up new production facility, expansion/modernization/upgradation of existing facilities and for acquisition of production equipment/technology. Such facilities particularly help export oriented Small and Medium Enterprises for creation of export capabilities and enhancement of international competitiveness. Under its Export Marketing Finance programme, Exim Bank supports Small and Medium Enterprises in their export marketing efforts including financing the soft expenditure relating to implementation of strategic and systematic export market development plans. The Bank has launched the Rural Initiatives Programme with the objective of linking Indian rural industry to the global market. The programme is intended to benefit rural poor through creation of export capability in rural enterprises. In order to assist the Small and Medium Enterprises, the Bank has put in place the Export Marketing Services (EMS) Programme. Through EMS, the Bank seeks to establish, on best efforts basis, SME sector products in overseas markets, starting from identification of prospective business partners to facilitating placement of final orders. The service is provided on success fee basis. Exim Bank supplements its financing programmes with a wide range of value-added information, advisory and support services, which enable exporters to evaluate international risks, exploit export opportunities and improve competitiveness, thereby helping them in their globalisation efforts.
Lines Of CreditGeneral Guidelines on Exim Lines of creditIntroductionExim Bank extends lines of credit to overseas governments/agencies nominated by them orfinancial institutions overseas to enable buyers in those countries to import capital/engineeringgoods, industrial manufactures and related services from India on deferred payment terms. Thisfacility enables importers in those countries to import from India on deferred credit terms as perthe terms and conditions already negotiated between Exim Bank and the overseas agency. TheIndian exporters can obtain payment of eligible value from Exim Bank against negotiation ofshipping documents, without recourse to them. Exim Bank Finance Exim Bank is fully owned by the Government of India and is managed by the Board of Directors with repatriation from Government, financial instiutions, banks and business community. The Export- Import Bank of India (Exim Bank) provides financial assistance to promote Indian exports through direct financial assistance, overseas investment finance, term finance for export production and export development, pre- shipping credit, buyers credit, lines of credit, relending facility, export bills redixcounting, refinance to commercial banks. The Exim Bank also extends non-founded facility to Indian exporters in the form of guarantees. The diversified lending programme of the Exim Bank now covers various stagesof exports, i.e., from the developemnt of export makers to expansion of production capacity for exports, producton capacity for exports, production for exports and post- shipment financin. The Exim Banks focus is on export of manufactured goods, project exports, expoports, of technology services and exports of computers software. FINANCING PROGRAMMES Loans to Indian Companies Deferred payment exports : Term finance is provided to Indian exporters of eligible goods and services which enables them to offer deferred credit to overseas buyers. Deferred credit can also cover Indian consultanc, technology and other services. Commercial banks participate in this programme directly or under risk syndication arrangements. Preshipment credit : finance is available form Exim Bank for companies executing export contracts involving cycle time exceeding six months. The facility also enables provision of rupee mobilisation expenses for construction/turnky project exporters. Term loans for export prodcution : Exim Bank provides term loans/deferred payment guarantees to 100% export.oriented units, units in free trade zones and computer software exporters. In commaboration with International Finance Corporation.Washington, Exim Bank provides loans to enable small and medium enterprises upgrade export production capability. Facilities for deeded exports; Deemed exports are eligible for funded and non- funded facilities from Exim Bank. Overseas Investment finance : Indian companies establishing joint ventures overseas are provided finance towards their equity contribution in the joint venture. Finance for export marketing : This programme, which is a component of a World Bank loan, helps exporters implement their export market development plans. Loans to Foreign Goverments, Companies and financial Institutions Overseas Buyers Credit : Credit is directly offered to foreign entities for import of eligible goods and related services,on deferred payment.
Lines of Credit : Besides foreign goverments, finance is available to foreign finandial institutions and goverment agencies to on-lend in the respective country for import of goods and services from India. Relending Facility to Banks Overseas : Relending facility is extended to banks overseas to enable them to provide term finance to their clients world-wide for imports from India. Loans to Commercial Banks in India Export Bills Rediscounting : Commercial Banks in India who are authorised to deal in foreign exchange can rediscount their short term export bills with Exim Banks, for an unexpired usance period of not more than 90 days. Refinance of Export Credit : Authorised dealers in foreign exchange can obtain from Exim Bank 100% refinance of de3ferred payment loans extended for export of eligible Indian goods. Guaranteeing of Obligations Exim Bank participates with commercial banks in India in the issue of guarantees required by Indian companiesfor the export contracts and for exzewcution of overseas construction and turnkey projects.Export-Import Bank of India (EXIM Bank) -Web site of EXIM Bankwww.eximbankindia.comExport-Import Bank of India was set up in 1982 by an Act ofParliament for the purpose of financing, facilitating and promotingIndia’s foreign trade. It is the principal financial institution in thecountry for coordinating the working of institutions engaged infinancing exports and imports. Exim Bank is fully owned by theGovernment of India and the Bank’s authorized and paid up capitalare ` 10,000 crore and ` 2,300 crore respectively.Exim Bank lays special emphasis on extension of Lines of Credit(LOCs) to overseas entities, national governments, regionalfinancial institutions and commercial banks. Exim Bank also extendsBuyer’s credit and Supplier’s credit to finance and promote country’sexports. The Bank also provides financial assistance to export-oriented Indian companies by way of term loans in Indian rupees orforeign currencies for setting up new production facility,expansion/modernization or upgradation of existing facilities and foracquisition of production equipment or technology. Exim Bank helpsIndian companies in their globalization efforts through a wide rangeof products and services offered at all stages of the business cycle,starting from import of technology and export product developmentto export production, export marketing, pre-shipment and post-shipment and overseas investment.
The Bank has introduced a new lending programme to financeresearch and development activities of export-oriented companies.R&D finance by Exim Bank is in the form of term loan to the extentof 80 per cent of the R&D cost. In order to assist in the creation andenhancement of export capabilities and internationalcompetitiveness of Indian companies, the Bank has put in place anExport Marketing Services (EMS) Programme. Through EMS, theBank proactively assists companies in identification of prospectivebusiness partners to facilitating placement of final orders. UnderEMS, the Bank also assists in identification of opportunities forsetting up plants or projects or for acquisition of companiesoverseas. The service is provided on a success fee basis.Exim Bank supplements its financing programmes with a widerange of value-added information, advisory and support services,which enable exporters to evaluate international risks, exploit exportopportunities and improve competitiveness, thereby helping them intheir globalisation efforts.d improve competitiveness, therebyhelping them in their globalisation efforts.
Discounting / Rediscounting of Bills by banks Presently banks purchase / discount / negotiate bills under Letter of Credit (LC) only in respect of genuine commercial and trade transactions of their borrower constituents who have been sanctioned regular credit facilities by the banks. Banks could not, therefore, extend fund-based credit facilities (including bills financing) to a non-constituent borrower or a non-constituent member of a consortium / multiple banking arrangement. deferred payment1. Finance money to be repaid latermoney owed that will be repaid at a later date The Banks functions are segmented into several operating groups including: Corporate Banking Group which handles a vairety of financing programmes for Export Oriented Units (EOUs), Importers, and overseas investment by Indian companies. Project Finance / Trade Finance Group handles the entire range of export credit services such as suppliers credit, pre- shipment credit, buyers credit, finance for export of projects & consultancy services, guarantees, forfaiting etc. Lines of Credit Group Lines of Credit (LOC) is a financing mechanism that provides a safe mode of non-recourse financing option to Indian exporters, especially to SMEs, and serves as an effective market entry tool. Agri Business Group, to spearhead the initiative to promote and support Agri-exports. The Group handles projects and export transactions in the agricultural sector for financing. Small and Medium Enterprises Group to the specific financing requirements of export oriented SMEs. The group handles credit proposals from SMEs under various lending programmes of the Bank. Export Services Group offers variety of advisory and value-added information services aimed at investment promotion Fee based Export Marketing Services Bank offers assistance to Indian companies, to enable them establish their products in overseas markets. Besides these, the Support Services groups, which include: Research & Planning, Corporate Finance, Loan Recovery, Internal Audit, Management Information Services, Information Technology, Legal, Human Resources Management and Corporate Affairs.