- Export Credits
- Finance for Export Oriented Units
- Overseas Investment Finance
- Lines of Credit
- SME & Agri Finance
- Film Finance
- Rural Initiatives
- Export Services
Annual Report 2011-12
:: SME SERVICES
|Home : Finance & Services : SME Finance: Services|
The SME sector can avail of a comprehensive range of products and services that Exim Bank offers. Broadly, these can be classified into three categories:
Exim Bank provides pre shipment and post shipment credit in Indian rupees and foreign currency. Finance is extended for short term i.e. upto 6 months as also for medium/long term i.e. beyond 6 months for eligible products and projects. Medium/long term export credit is extended by way of supplier's credits i.e. through the Indian exporter with recourse to the exporter or buyer's credits i.e. directly to the overseas buyer with no recourse to the Indian exporter. Certain RBI guidelines apply for such medium/long term export credit.
Exim Bank has been recently permitted by RBI to cover inter-alia agricultural
commodities and processed foods under the Lines of Credit. Export
contracts under Lines of Credits are financed without recourse to
the exporter i.e. off balance sheet finance whilst the importer gets
credit. Exim Bank extends loans for executing deemed export contracts.
Exim Bank also issues guarantees overseas on behalf of Indian exporters.
Hammocks made out of cork and cotton ropesINCA Hammocks, Chennai (Exim Bank assisted SME)
Finance for Export Oriented Companies
Exim Bank offers loans for financing Export Oriented Companies which
may be categorized as under:
- Project Finance
- Finance for new projects, expansion, modernization projects.
- Finance for purchase of equipment both imported as well as indigenous.
- Working Capital both short term as well as medium term.
- Overseas Investment Finance
Overseas investment by Indian companies may be in the form of Joint Ventures (JVs) or Wholly Owned Subsidiaries (WOS). Term loans are extended by Exim Bank against equity contribution/loan extended by Indian companies to their JVs/WOS. Term finance is provided directly to the JVs/WOS with corporate guarantee of the Indian promoter companies. Exim Bank can also participate in the equity of the overseas JV/WOS of the Indian company selectively subject to certain conditions.
- Special Programmes
- Export Marketing Finance (Finance for developing strategic forward linkages) :
Term loans are extended to important strategic marketing plan
covering inter-alia, overseas market research, participating
in international trade fairs, promotion of product, brand
positioning, international quality certification, mirror product
adaptation, pre-operative expenses for overseas offices, prospective
buyers visits to India, etc.
- Export Product Development:
Term Loan for product adaptation, pilot plants, product/process development, etc.
- Backward Linkage/ Vendor Development Programme:
The Export Vendor Development Programme aims to support development of backward linkages by exporters. Rupee term finance is available on competitive terms to exporters for implementing strategic vendor development plans i.e. backward linkage for production of goods for exports in order to increase exports. Export/Trading Houses or manufacturer-exporters with satisfactory track record and strategic plan for development of backward linkages for exports are eligible to seek finance under this programme. Exim Bank may provide farm finance to exporters entering into backward linkages through contract farming with farmers on partnership basis for exports.
- Finance for Research & Development:
Exim Bank also provides lending for Research & Development activities for facilitating exports.