The intervention under the Export Promotion Mission seeks to enhance access to working capital for MSMEs engaged in international trade through e-commerce. The objective is to enable them to manufacture goods in anticipation of export demand and scale up their participation in global markets. Under this Intervention, credit guarantee cover will be extended to banks for credit assistance extended by them in the form of Cash Credit, Overdraft, or other Working Capital facilities to eligible beneficiary entities, in accordance with the coverage parameters. These facilities will also be supported through interest subvention, in accordance with the notified ceilings.
There are two broad mechanisms for supporting e-commerce exports, which will be implemented in a phased manner: (i) Direct e-Commerce Credit Facility, for exporters engaged in e-commerce exports through postal or courier route, or holding inventory in ECEHs,
(ii) Overseas Inventory e-Commerce Credit Facility for exporters holding inventory in overseas warehouses for e-commerce sales.
Salient features
I. Direct e-Commerce Credit Facility
Support for credit facility of up to Rs. 50 lakhs
Guarantee cover up to 90%
Maximum period up tob 365 days
0.5% p.a. guarantee fee payable by lending institution
II. Overseas Inventory e-Commerce Credit Facility
Support for credit facility of up to Rs. 5 crore
Guarantee cover up to 75%
Maximum period up to 365 days
1.0% p.a. guarantee fee payable by lending institution
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:
E-Commerce Export
MSME engaged in direct e-commerce exports through postal or courier or holding inventory in ECEHs for the purpose of exports.
Standard Credit Account Required
MSME borrower credit account shall be a standard asset, not overdue beyond the period permitted under applicable prudential norms and shall not be classified as stressed or non-performing by the lending institution.
Clean Credit History Sectors & Services
The account shall not have been classified as a Special Mention Account–2 (SMA-2) or a Non-Performing Asset (NPA) at any time during the two years immediately preceding the date of application for the credit facility.
No Defaulter or Negative Listing
The name of company and/or its directors/ partners/ proprietors/ promotors shall not be appearing in the lending institution's defaulter list and in any of this Negative lists.
Overseas Inventory E-Commerce Credit Facility
Credit facility shall be extended by banks/financial institutions as
Cash Credit/Overdraft facilities, subject to the following eligibility conditions:
Global E-Commerce Participation
MSMEs involved in international value chains through e-commerce and holding inventory in overseas warehouses for e-commerce sales.
Standard Credit Account Required
MSME borrower credit account shall be a standard asset, not overdue beyond the period permitted under applicable prudential norms and shall not be classified as stressed or non-performing by the lending institution.
Clean Credit History Sectors & Services
The account shall not have been classified as a Special Mention Account–2 (SMA-2) or a Non-Performing Asset (NPA) at any time during the two years immediately preceding the date of application for the credit facility.
No Defaulter or Negative Listing
The name of company and/or its directors/ partners/ proprietors/ promotors shall not be appearing in the lending institution's defaulter list and in any of this Negative lists.
Scheme Documents & Guidelines
Niryat Protsahan
To learn more and apply, visit tap.eximbankindia.in
