Production Equipment Finance Programme Objective Under the Production Equipment Finance Programme (PEFP), Exim Bank seeks to finance non-project related capital expenditure of export oriented units. PEFP is structured as an umbrella arrangement under which various equipment, imported and indigenous, can be financed, thus obviating the need to arrange finance for every such procurement. It is not necessary to identify specific equipment sought to be financed at the time of application; this could be done at the time of disbursement. PEFP is a fast-disbursing window available to export oriented units. Eligible Companies Companies with good track record and sound financials Existing export-oriented units with minimum export orientation (present or targeted) of 10% of total sales or Rs.5 crores in value whichever is lower. Instrument Term loans in Indian rupees/foreign currency Interest Rates Rupee term loan linked to Bank's minimum lending rate Foreign currency term loan at floating or fixed interest rates based on Bank's cost of funds Interest is payable semi-annually on reducing balances Interest tax as applicable Service Fee 1% of loan amount payable upfront Availability Period Upto one year from the date of sanction. Margin Minimum 10% Security Hypothecation of equipment, plant & machinery financed by the Bank Additional security by way of personal guarantee, any other asset of borrower's company, corporate guarantee of group company/parent company & appropriate charge on any other security on a case to case basis. How to access finance Bank welcomes preliminary discussions with the promoters to determine scope for Exim Bank's term finance under PEFP To facilitate discussions, do send project profile identifying financial requirements Back

Overseas Investment Finance Lending Programme for Overseas Joint Ventures/Wholly Owned Subsidiaries by Indian Companies Objective To finance by way of equity loan to Indian companies for setting up of overseas joint ventures/ wholly owned subsidiaries Eligible Companies Any Indian promoter making equity investment in an existing company or a new project overseas with the requisite approval for such investment from the Reserve Bank of India (RBI)/Government of India as also from the government and other concerned authorities in the host country Government Guidelines Proposals for setting up JV/WOS abroad require approval of the RBI in accordance with the Guidelines for Indian Direct Investment in JVs and WOS Abroad notified by the Government of India, Ministry of Commerce. Fast Track Cases Proposals for direct investment in a JV/WOS abroad from a company will be eligible for automatic approval by RBI provided The total value of the investment by the Indian company does not exceed US $ 15 million in respect of Indian investment in SAARC countries and Myanmar total value of investment does not exceed US $ 30 million; and in respect of Indian Rupee investment in Nepal and Bhutan, total value of investment does not exceed Rs.120 crores The amount of investment is upto 25% of annual average export earnings of the company in the preceding three years The amount of investment is repatriated in fully by way of dividends, royalty, technical service fees, etc. within a period of five years. Other Cases Proposals involving investments beyond US $ 4 million but not exceeding US $ 15 million or those not qualifying on the basis of the applicable criteria outlined above will be processed in the RBI through a Special Committee appointed by RBI. Such proposals could preferably be accompanied by a Technical Appraisal by any one of the designated agencies (including Exim Bank). Large Investments Proposals for overseas investment in excess of US $ 15 million will be considered if the required resources beyond US $ 15 million are raised through the GDR route. Upto 50% of the GDR resources raised may be invested as equity in overseas JV/WOS subject to specific approval of the Government. Applications for investments beyond US $ 15 million would be received in the RBI and transmitted to the Ministry of Finance for examination with the recommendation of the Special Committee. For investment out of EEFC balances upto a maximum of US$15 million permission would be granted by Authorised Dealers Mode of Overseas Investment Indian companies are allowed to invest equity in overseas joint ventures/wholly owned subsidiaries by way of : Capitalisation of export proceeds of plant & machinery , technical know-how fee, royalty Forex remittance of equity contribution Instruments Rupee term loan to Indian companies for financing their equity investment overseas Rupee term loan for on lending to their overseas joint venture/wholly owned subsidiaries Guarantee for raising finance overseas for equity investment and for working capital requirements for overseas joint ventures/wholly owned subsidiaries Interest Rates Rupee term loan linked to Bank's minimum lending rate Foreign currency term loan at floating or fixed interest rates based on Bank's cost of funds Interest is payable on reducing balances at half yearly rates Additionally interest tax as applicable will be payable Margin Maximum upto 80% of the Indian company's equity contribution in overseas JV/WOS Security Exim's finance will be secured by: An appropriate charge on the borrowers assets in India and/or any other security acceptable to Exim Bank. Pledge of borrower shares of Indian promoter companies An overseas investment insurance policy to be obtained by the company from ECGC/MIGA and assigned in favour of Exim Bank. In case of assistance by way of guarantee, counter guarantee from Indian promoter company. Refinance to Commercial Banks Exim Bank provides 100% refinance to commercial banks in respect of rupee term loans extended by them to Indian promoter company for equity contribution in overseas JV/WOS. As per prevailing RBI guidelines, commercial banks can consider loan for equity investment only under Exim Bank's Refinance scheme. How to access finance Bank welcomes preliminary discussions with the promoters to determine scope for Exim Bank's finance To facilitate discussions, do send project profile identifying financial requirements Back

Equity Investment In Indian Ventures Abroad Objective To catalyse overseas investment by Indian companies to enhance visibility of Indian overseas ventures. Quantum of Exim Bank's equity participation Upto 25% of equity capital of the JVs involving Indian & foreign companies Upto 50% of equity capital in case of wholly owned subsidiaries of Indian companies Subject to a ceiling of US $ 5 mn per proposal and remove subject to RBI Investment Criteria While considering equity investment with Indian companies business in India, weightage will be giving to the following : Background and track record of Indian and foreign promoters Synergy of overseas operations with business in India Financial viability and technical feasibility Return on Exim's investment Benefits to India in terms of trade enhancement, technology transfer, foreign exchange earnings etc. Spin off benefits such as brand marketing and penetration of new markets will also be considered EXIT ROUTE for Exim Bank's equity investment Within 5 years from the date of investment Exim Bank's equity may be offloaded to Indian promoters Other interested Indian companies Stock Exchange in host country Others Buy back arrangement between Exim Bank & Indian promoter company How to access Exim Bank welcomes discussion with Indian promoter company seeking Exim Bank's equity participation in their overseas joint ventures Back

Asian Countries Investment Partners Programme (ACIP) Objective To promote joint ventures in India between Indian companies & companies from Asian countries through four facilities that address different stages of the project cycle. ACIP seeks to catalyse investment flows into India by creation of Joint Ventures in India between Indian companies and companies from East Asian countries. ACIP is proposed to be a funding instrument providing finance at various stages of a Joint Venture project cycle viz. sector study, project identification, feasibility study, prototype development, setting up project and technical, managerial assistance. Features Facility 1 Facility 2 Facility 3 Facility 4 Finance for Identification of potential joint venture projects and partners Operations prior to launching a joint venture like pilot plant- feasibility study Project Expenditure Human Resources development : training and management assistance Beneficiaries Chambers of commerce, industrial/investment promotion agencies and other eligible bodies. Indian companies seeking joint venture in India Joint venture companies set up under ACIP Joint ventures companies set up under ACIP Instrument Grant Soft loan Term loan Soft loan Finance available Maximum of Rs. 20 lakhs Maximum of Rs. 50 lakhs Need Based Maximum of Rs. 50 lakhs Interest Rate N.A. 7.5% p.a. As applicable to Exim's rupee term loan 7.5% p.a. Limits Upto 50% of the cost Upto 50% of the cost Need Based Upto 50% of the cost Repayment N.A. Within 5-7 years Within 5-7 years Within 5-7 years How to access Exim Bank's finance Bank welcomes preliminary discussions with the promoters to determine scope for Exim Bank's finance Back

Export Marketing Finance Programme Objective To create and enhance export capabilities and international competitiveness of Indian companies. Under the lending programme for Export Marketing Finance, the Bank addresses the term finance requirements for a structural and strategic export marketing and development effort of Indian companies. Eligible Companies Company who have a strategic international marketing plan. Company should have established presence in the domestic market Company should have satisfactory financials. Eligible Activities Activities associated with export marketing and export capability creation are financed under the programme. Typical activities eligible for finance under this programme are desk/field research, minor product adaptation, overseas travel, training, quality certification, product launch, investment in machinery and equipment, testing/quality control equipment, and factory premises. Instrument Term loan in Indian Rupees/ US $ Interest Rates Rupee Term Loans - Linked to Exim Bank's Minimum Lending Rate Foreign Currency Term Loans - At floating or fixed interest rates Additionally interest tax is applicable will be payable Service Fee 1% of loan amount sanctioned, payable upfront & non-refundable Repayment Upto five years inclusive of moratorium. Margin 20% Security Hypothecation of moveable fixed assets of the company. Mortgage of immovable fixed assets of the company. Any other security acceptable to Exim Bank. How to access finance Bank welcomes preliminary discussions with the promoters to determine scope for Exim Bank's finance Back

Export Product Development Programme Objective To support systematic export product development plans with focus on industrialised markets Eligible Companies Established exporting enterprises with product development programme dedicated to export The company must also have an established track record and satisfactory financials Eligible Activities Term finance for product design and development activities. Research and development activities including cost of manufacture of prototypes development, pilot plants, product testing, development of toolings, jigs & fixtures, process development costs and product launch. Instrument Rupee Term loans on soft term basis Interest Rates Will be decided on case to case basis Repayment Period 5-7 years Margin 20% Security First charge on the fixed assets of the borrower Any security as may be considered appropriate on the merits of the case How to access finance Bank welcomes preliminary discussions with the promoters to determine scope for Exim Bank's finance To facilitate discussions, do send project profile identifying financial requirements Back

Programme For Financing Export Vendor Development (EVD) Objective To finance export strategic vendor development plans for export companies with a view to enhancing exports through creation, strengthening of backward linkages with vendors. Eligible Companies Export companies and Trading Houses Manufacturer-exporters with satisfactory track record and financials ,li> Companies with strategic plan for vendor development for exports are eligible to seek finance under this programme Companies purchasing from vendors finished, semi-finished or intermediate products with the exporter adding value to the product in the form of further processing or marketing them Eligible Activities Activities undertaken by exporters to develop and upgrade vendors that will lead to export additionality are eligible for finance under EVD. Examples acquisition of production machinery; purchase of toolings, moulds, jigs, dies and ancillary equipment; core working capital assistance extended by exporters to vendors; `soft' expenditure on vendor development such as vendor training, technical assistance to vendors. Instrument Rupee Term loans including soft loan component Interest Rates Interest Rate linked to Bank's Minimum Lending Rate Soft loan at 7.5% p.a. (subject to change) subject to maximum of Rs.50 lakhs Repayment Period Upto 7 years Margin 20% Security First charge on the borrower company's assets How to access finance Bank welcomes preliminary discussions with the promoters to determine scope for Exim Bank's term finance To facilitate discussions, do send project profile identifying financial requirements Back

Programme For Export Facilitation Exim Bank offers term finance and non-funded facilities to Indian corporates to create infrastructure facilities to facilitate India's international trade & thereby enhance their export capability What are infrastructural facilities covered under programme ? Software Port Development Any other infrastructural facility for promoting India's international trade 1. Financing Port Development Objective To finance development of minor ports with related infrastructural activities which would facilitate India's international trade. Eligible Company Indian companies undertaking minor port projects Suppliers of equipment to minor port development projects Eligible activities Construction of ports/jetties Acquisition of fixed assets for individual activities such as stevedoring, cargo handling, storage and related activities like dry docks, ship breaking. Interest Rates Interest Rate linked to Bank's Minimum Lending Rate Term loans in foreign currency loans interest rates be at floating for fixed rates. In the case of non-funded facilities, applicable rate of commission is charged. Repayment Period 7 to 10 years inclusive of moratorium Security First charge on fixed assets pertaining to the project/company being financed. Additional security by way of assets or corporate guarantee of promoter company/personal guarantees may also be stipulated. How to access finance Bank welcomes preliminary discussions with the promoters to determine scope for Exim Bank's finance 2. Lending Programme for Software Training Institutes Objective The programme seeks to address the perceived constraint in availability of trained high-end software professionals to support the fast growing software exports. The programme aims at financing the establishment / expansion of software training institutes. Eligible Borrowers Established software exporting company with good export track record and sound financials Reputed software training institutes engaged in high end software training Eligible Activities Acquisition of fixed assets including land, building, hardware, software and related equipment. Extending loans towards tuition fees and other charges Any other activity connected with training that may be agreed by Exim Bank. Instrument Term loans in Indian rupees/ foreign currency Interest Rates Rupee term loan linked to Bank's minimum lending rate Foreign currency term loan at floating or fixed interest rates based on Bank's cost of funds Interest is payable semi-annually on reducing balances Interest tax as applicable Service Fee 1% of loan amount payable upfront. Repayment Period Upto five years, based on projected cash flows inclusive of suitable moratorium. Security Appropriate charge on fixed assets of the company/project plus any other security acceptable to Exim Bank. How to access finance Bank welcomes preliminary discussions with the promoters to determine scope for Exim Bank's finance Back

Foreign Currency Pre-Shipment Credit (FCPC) Objective Under this programme, short-term foreign currency finance is available to eligible exporters for financing inputs for export production such as raw materials, components and consumables. The finance is repayable in foreign currency from proceeds of the relative exports. FCPC programme represents another funding source to the exporter for expanding export volumes, particularly of manufactured and value added goods. It eliminates two-way exchange conversion costs and exchange risk, thus enhancing export competitiveness. FCPC can be a cost effective funding source as compared to rupee export credit as well as overseas supplier's credit depending on market conditions for loans under FCPC. As far as commercial banks are concerned, loans availed of from Exim Bank are exempt from Cash Reserve Ratio, Statutory Liquidity Ratio and Incremental Credit-Deposit Ratio requirements. Eligible Borrowers Exporting companies Commercial Banks for on lending to exporting customers Interest Rates Rate shall not exceed 2% over London Inter Bank Offer Rate (LIBOR)) Incase FCPC is extended through commercial bank which does not have foreign branches the interest rate should not exceed 2.5% over LIBOR or any other rate as specified by Reserve Bank of India from time to time Interest on refinance to commercial banks will be mutually agreed Instrument Short term foreign currency loans Repayment Maximum 180 days from the date of disbursement Security Pari passu charge on current assets in case of direct loans How to access finance Bank welcomes preliminary discussions with the promoters to determine scope for Exim Bank's finance Back

Working Capital Term Loan Programme For Export Oriented Units (WCTL) Objective WCTL programme seeks to create, enhance export capabilities of Indian companies. Under the Programme, the Bank addresses the working capital (loan component) requirements of export oriented units. Eligible Companies Units set up/proposed to be set up in Export Processing Zones Units under the 100% Export Oriented Units Scheme Units importing capital goods under Export Promotion Capital Goods Scheme Units undertaking expansion /modernisation /upgradation/diversification programmes of existing export oriented units with export orientation of 10% of sales or export sales of Rs.5 crores per annum whichever is lower What is on offer Working capital term loans in Indian rupees or in foreign currency, upto 80% of the demand loan component of working capital with a minimum 20% margin. Interest Rates Rupee term loan linked to Bank's minimum lending rate Foreign currency term loan at floating or fixed interest rates based on Bank's cost of funds Interest is payable semi-annually on reducing balances Interest tax as applicable Tenor Upto 2 years, depending upon the projected funds flow of the borrower company. Repayment Bullet at the end of the loan tenor or semi-annual installments. Rollover of WCTL may be considered at the discretion of Exim Bank. Security Appropriate charge on the fixed and / or current assets, personal guarantees of promoter directors, corporate guarantee of group concern if considered necessary How to access finance Bank welcomes preliminary discussions with the promoters to determine scope for Exim Bank's finance To facilitate discussions, do send project profile identifying financial requirements Applications may be made to any of the Bank's offices in India along with completed CMA format Back

Bulk Import Finance Programme (BIF) Objective To provide short term working capital finance to manufacturing companies to excess consumable inputs Features Under the programme, BIF is offered for import of eligible items with a minimum order size of Rs.1 crores Instrument Short term loans in Indian Rupees and/or Foreign currency Interest Rates Rupee : 1% below the interest rate on cash credit facility charged by the commercial (lead) banker subject to a minimum interest rate fixed by Exim Bank Foreign Currency: Depending on cost of funds to Exim Bank with a maximum of 0.75% over LIBOR Repayment Upto 1 year Security Pari-passu charge on current assets How to access finance Bank welcomes preliminary discussions with the promoters to determine scope for Exim Bank's finance To facilitate discussions, do send project profile identifying financial requirements Back

Programme For Financing Research & Development Objective To provide integrated financing for Research & Development activities by export oriented companies Exim Bank's finance available to Financially sound companies with a minimum export orientation of 20% of their net sales for the following eligible activities and eligible expenditure. Eligible R&D Activities Eligible R&D Expenditure Development and commercialisation of new product / process / application. Significant improvements in existing product / process / application/ design. Development of technology or design to satisfy domestic or international environment, technical requirements/ standards, specifications. Setting up, expansion of pilot plants. Research studies necessary for obtaining regulatory approvals, product registrations, cost of filing and maintaining international patents R&D centres Acquisition of technology at the 'proof of concept' or design stage which will be used to develop new product/ process Land and building, civil works for housing eligible R&D activities Dies, tools, laboratory and other R&D equipment, mould, computer hardware, software, miscellaneous fixed assets Salaries of R&D personnel, support staff during the R&D project phase including training costs Cost of regulatory approvals, filing and maintenance of patent registration Expenditure on external consultants for outsourcing a component of R&D project Product documentation and allied costs during the R&D project phase Costs of materials, surveys, technology demonstration studies, field trials Basic research with no identified application, academic research and normal process control, quality control, inspection, repairs and maintenance, contract research will not be eligible under this Programme. Instrument Term Loan in Indian Rupees (Subject to a maximum of Rs.15 crores per company. Amounts in excess of Rs. 15 crores will attract normal interest rate.) Interest Rate Concessional interest rate at 50% of the normal interest that the borrower company would be eligible for subject to a minimum of 8% p.a., payable with quarterly rests. Interest at quarterly rests. Default in loan servicing will attract liqudated damages/penal charges @ 2% over the normal interest rate. Service Fee 1% of loan amount payable upfront. Repayment Generally not to exceed seven years, with appropriate moratorium. Security One or more of the following: Appropriate charge on the assets of borrower company. Assignment of Intellectual Property Rights (IPR) and mandate assigning all IPR related receivables. Any other acceptable security. How to access Exim Bank's finance Bank welcomes preliminary discussions with the company officials to determine scope for Exim Bank's finance, expected benefits from proposed R&D expenditure, fit with company's corporate business plans, in particular, export plans, mutual business possibility with Exim in other areas and financial information on the Company To facilitate discussions do send project profile identifying financial requirements Back

Long Term Working Capital Programme For Export Oriented Units Objective To provide finance for long term working capital Exim Bank's finance available to Financially sound companies with a minimum export orientation (present or targeted) of 10% of their net sales OR export sales of Rs.5 crores (per year), whichever is lower. Instrument Term loans in Indian rupees Term loans in foreign currency Interest Rate Rupee term loan linked to Bank's minimum lending rate Foreign currency term loan at floating or fixed interest rates based on Bank's cost of funds Interest is payable on reducing balances at half yearly rates Additionally interest tax as applicable will be payable Service Fee 1% of loan amount payable upfront. Repayment Period Repayable in 1 - 5 years, determined on the basis of projected cashflows with suitable moratorium. Security One or more of the following: An appropriate charge on part/ whole of the fixed assets of the company, present and future; Personal Guarantees of promoter directors/ Corporate Guarantee of group company Pledge of marketable securities with appropriate margin based on average of high and low of market quotations during the preceding 6 months (This will not be accepted as exclusive security) Any other acceptable security How to access Exim Bank's finance Bank welcomes preliminary discussions with the company officials to determine scope for Exim Bank's finance To facilitate discussions do send project profile identifying financial requirements Back

Import Finance Objective To provide finance for import of capital goods/plant and machinery, technology/know-how Exim Bank's finance available to Indian manufacturing companies Instrument Term loans in Indian rupees / foreign currency Interest Rate Based on prevailing market rates Rupee term loan linked to Bank's minimum lending rate Foreign currency term loan at floating or fixed interest rates based on Bank's cost of funds Interest is payable on reducing balances at half yearly rates Interest tax as applicable Service Fee 1% of loan amount payable upfront. Repayment Period Over a period upto seven years, determined on the basis of projected cashflows with suitable moratorium. Security Appropriate charge on the asset acquired out of the loan. Additionally, one or more of the following: A first pari passu charge on part/ whole of the fixed assets of the company, present and future; Personal Guarantees of promoter directors/ Corporate Guarantee of group company Pledge of marketable securities with appropriate margin based on average of high and low of market quotations during the preceding 6 months (Pledge of shares will not be accepted as exclusive security) Any other acceptable security How to access Exim Bank's finance Bank welcomes preliminary discussions with the company officials to determine scope for Exim Bank's finance To facilitate discussions do send project profile identifying financial requirements Back

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