EXPORT related SUPPORT
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EXPORT credit FGUARANTEE insurance
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The Export-Import Bank of India (Exim Bank) is a public sector financial institution created by an Act of Parliament, the Export-import Bank of India Act, 1981. The business of Exim Bank is to finance Indian exports that lead to continuity of foreign exchange for India. The Bank's primary objective is to develop commercially viable relationships with a target set of externally oriented companies by offering them a comprehensive range of products and services, aimed at enhancing their internationalisation efforts.
Exim Bank provides a range of analytical information and export related services. The Bank's fee based services help identify new business propositions, source trade and investment related information, create and enhance presence through joint network of institutional linkages across the globe, and assists externally oriented companies in their quest for excellence and globalisation. Services include search for overseas partners, identification of technology suppliers, negotiating alliances, and development of joint ventures in India and abroad. The Bank also supports Indian project exporters and consultants to participate in projects funded by multilateral funding agencies.
3.What are the various types of financial facilities provided by Exim Bank to Indian Companies for export of turnkey/ construction projects, export of services and export of capital/ engineering goods & consumer durables ?
Exim Bank provides financial assistance to Indian Companies by way of a variety of lending programmes, viz.,
Advance Payment Guarantee
Guarantee for release of Retention Money
Guarantee for raising Borrowings Overseas
Pre-shipment Rupee Credit
Post-shipment Rupee Credit
Foreign Currency Loan
Overseas Buyer's Credit
Lines of Credit
Loan under FREPEC programme
Refinance of Export Loans
Exim Bank provides financial assistance to Indian Companies for export capability creation by way of a variety of lending programmes, viz.,
Lending Programme for Export Oriented Units
Production Equipment Finance Programme
Export Marketing Finance Programme
Lending Programme for Software Training Institutes
Programme for Financing Research & Development
Programme for Export Facilitation: Port Development
Export Vendor Development Lending Programme
Foreign Currency Pre-Shipment Credit
Working Capital Term Loan Programme for Export Oriented units
Assistance is extended to Indian Promoter Companies by way of programmes that address to different requirements of the promoter company in setting up of the joint venture.
Overseas Investment Finance Programme for setting up joint ventures and wholly owned subsidiaries abroad.
Asian Countries Investment Partners (ACIP) Programme for creation of a joint venture in India with East Asian countries, through four facilities that address different stages of a project cycle.
EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LTD offers EXPORT TURNOVER POLICY. Turnover policy is a variation of the standard policy for the benefit of large exporters who contribute not less than Rs. 10 lacs per annum towards premium. Therefore all the exporters who will pay a premium of Rs. 10 lacs in a year are entitled to avail of it.
The turnover policy envisages projection of the export turnover of the exporter for a year and the initial determination of the premium payable on that basis, subject to adjustment at the end of the year based on actuals. The policy provides additional discount in premium with an added incentive for increasing the exports beyond the projected turnover and also offers simplified procedure for premium remittance and filing of shipment information. It also provides for higher discretionary credit limits on overseas buyers, based on the total premium paid by the exporter under the policy. The turnover policy is issued with a validity period of one year. In most of the other respects the provisions relating to standard policy will apply to turnover policy.
Shipments (Comprehensive Risks) Policy, commonly known as the Standard Policy, is the one ideally suited to cover risks in respect of goods exported on short-term credit, i.e. credit not exceeding 180 days. This policy covers both commercial and political risks from the date of shipment. It is issued to exporters whose anticipated export turnover for the next 12 months is more than Rs.50 lacs. (The
appropriate policy for exporters with an anticipated turnover of Rs.50 lacs or less is the Small Exporter's Policy, described separately).
Under the Standard Policy, ECGC covers, from the date of shipment, the following risks:
a. Commercial Risks
Insolvency of the buyer.
Failure of the buyer to make the payment due within a specified period, normally four months from the due date.
Buyer's failure to accept the goods, subject to certain conditions.
b. Political Risks
Imposition of restriction by the Government of the buyer's country or any Government action, which may block or delay the transfer of payment made by the buyer.
War, civil war, revolution or civil disturbances in the buyer's country. New import restrictions or cancellation of a valid import license in the buyer's country.
Interruption or diversion of voyage outside India resulting in payment of additional freight or insurance charges which can not be recovered from the buyer.
Any other cause of loss occurring outside India not normally insured by general insurers, and beyond the control of both the exporter and the buyer.