Exim Bank. Export-Import Bank of India

A Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects, equipment, goods and services from India. Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India. Exim Bank extends Lines of Credit to:

  • a)  Foreign Governments or their nominated agencies such as central banks, state owned commercial banks and para-statal organizations;
  • b) National or regional development banks;
  • c) Overseas financial institutions;
  • d) Commercial banks abroad;
  • e) Other suitable overseas entities.

The above mentioned recipients of LOCs act as intermediaries and on lend to overseas buyers for import of Indian equipment, goods and services. LOC is a financing mechanism that provides a safe mode of non-recourse financing option to Indian exporters to enter new export markets or expand business in existing export markets without any payment risk from the overseas importers.

BROAD GUIDELINES AND PROCEDURE FOR GOVERNMENT OF INDIA SUPPORTED LINES OF CREDIT

The Government of India (GOI), in 2003-04, formulated the Indian Development Initiative (IDI), now known as Indian Development and Economic Assistance Scheme [IDEAS] – with the objective of sharing India’s development experience through
(a) capacity building and skills transfer,
(b) trade, and
(c) infrastructure development,
by extending concessional Lines of Credit (LOCs) routed through Exim Bank, to developing partner countries, towards creating socio-economic benefits in the partner country. Recently, the Ministry of External Affairs (MEA) has set up the Development Partnership Administration (DPA) Division to deal with India’s development assistance programmes abroad, including LOCs routed through Exim Bank. These LOCs are now increasingly being extended to partner countries for large-scale and complex projects (project exports from India).

Bilateral or multilateral assistance, through lines of credit, typically follows a sequence of standard procedures, viz.
a) project identification and preparation,
b) review and approval of the project proposal,
c) offer of the loan, acceptance and execution of loan agreement,
d) project implementation, monitoring and supervision, and
e) socio-economic impact assessment after project completion.

The lessons learned from the impact assessment / evaluation act as a feedback to the preparation, review and implementation of future projects. This process forms the 'project cycle.'

BROAD GUIDELINES AND PROCEDURE EXIM BANK’S OWN COMMERCIAL LINES OF CREDIT.

Exim Bank, since its inception, has been extending LOCs to various countries to promote export of Indian projects, products and services. Under the LOCs extended by Exim Bank to overseas financial institutions, foreign governments, regional and national development banks and commercial banks, Exim Bank finances all items eligible for being exported under the 'Foreign Trade Policy' of Government of India. The credit periods for these LOCs are generally upto 7 years and the LOCs typically carry LIBOR-linked interest rates.

Exim Bank's Operative Lines Of Credit as on January 10, 2014
Exim Bank's Operative Lines Of Credit as on January 10, 2014
Exim Bank's Operative Lines Of Credit as on March 18, 2014
Exim Bank's Operative Lines Of Credit as on March 18, 2014
Exim Bank's Pipeline Lines of Credit as on January 10, 2014
Exim Bank's Pipeline Lines of Credit as on March 18, 2014
Invitation to Tender
Confirmation of Letters of Credit by Exim Bank under the GTFP Program of IFC, Washington DC
Name of Programme:

Confirmation of letters of credit (L/C) by exim bank under the Global trade finance program (GTFP) of the international finance Corporation (IFC), Washington DC.

Eligibility to avail finance or services:

The program envisages confirmation of Letters of credit (L/Cs), Standby letters of credit, demand guarantees, promissory notes or bills of exchange denominated in Dollars, Euro, Yen or in other freely available convertible currencies acceptable to IFC, received by Indian exporters from pre-approved banks in the countries of IFC's operation. IFC will provide guarantee facility to Exim Bank to cover such L/C confirmation and confirmation of other trade instruments

Exim Bank's L/C confirmation will cover the risk of non-payment by the Issuing Bank. Eligibility Criteria: The Issuing Bank must be in IFC's list of pre-approved banks. (List of issuing Banks is attached). Eligible Goods means export of all types of goods and commodities and related cost of selected transport and other services to any one of IFC’s countries of operation and not included in IFC’s exclusion list (exclusion list is attached). Pricing: The fee payable to Exim Bank (including fee payable to IFC) for adding confirmation to the L/C will be advised by Exim Bank along with the approval for confirmation of L/Cs and other trade instruments. The fee will be payable before confirmation of instruments by Exim Bank.