Exporters often face difficulty in confirmation of Letters of Credit when dealing with buyers in new or high-risk markets. Alongside, banks also have limited risk appetite to support transactions in these markets. This intervention under the Export Promotion Mission extends guarantees for LC-backed transactions, thereby enhancing confidence in trade settlements, strengthening the capacity of banks to support constrained cross-border transactions, and fostering partnerships between Indian banks and local banks abroad.
Salient features
Partial or full support for risk of non-payment
Exim Bank may extend up to 100% cover for eligible instruments
Risk sharing support in the range of 10 to 80% of transaction value from Trust Fund managed by NCGTC
Support for trade with 72 countries across Africa, Asia, Latin America, Europe and CIS region
Extent of Risk Coverage to Partner Banks
Eligibility Criteria
Direct E-Commerce Credit Facility
Credit facility shall be extended by banks/financial institutions as Cash Credit/
Overdraft facilities, subject to the following eligibility conditions:
Valid IEC & Udyam Required
All MSMEs involved in international value chains holding a valid Importer-Exporter Code (not in the Denied Entity List) and a valid MSME Udyam Registration Number shall be eligible for support under the intervention
FTP-Compliant Export Coverage
Exports of all goods permitted for exports under the Foreign Trade Policy of the Government of India shall be eligible, subject to a negative list under the intervention.
Focus on Emerging Markets
Support shall be available for transactions involving under-served markets identified under the Intervention. The list shall be reviewed periodically based on India's integration with these markets, demand in these markets, and India's untapped potential.
Scheme Documents & Guidelines
Niryat Protsahan
To learn more and apply, visit tap.eximbankindia.in
