Export-Import Bank Of India

About Export-Import Bank of India The Export-Import Bank of India, also

known as Exim Bank of India, is the leading export finance institution in the country. The
bank was set up in the year 1982 under the Export-Import Bank of India Act 1981. The
Government of India launched the Export-Import Bank Of India with an aim to augment
exports from India and also to combine the country's foreign trade and investment with
the overall economic growth. The bank began its operations as a supplier of export credit,
but has over the period evolved into an institution that plays a major role in partnering
Indian Industries including small and medium enterprises.

Export-Import Bank Of India Initiatives

Export-Import Bank of India has been one of the prime institutions that encourages
project exports from India. The bank offers wide-ranging services for enhancing the
prospect of Indian project exports. Exim Bank's Overseas Investment Finance program
gives a variety of facilities for Indian reserves and acquirements overseas. The facilities
consist of direct equity participation by the bank in the overseas venture and non-funded
activities by the overseas venture and loan to the Indian companies for equity
participation in the venture abroad. As part of Exim Bank's marketing Finance Program,
the bank offers support to small and medium enterprises in their export marketing efforts
consisting of financing the soft expenditure linking to completion of tactical and
systematic export market development plans.

Export-Import Bank Of India Objective

The primary objective of the Export-Import Bank of India is to provide financial

assistance to importers and exporters and function as the top financial institution. Some
of the services of the bank include: overseas investment finance, film finance, export
credit, finance for export oriented units and agricultural & SME finance. In the period of
2005- 2006 the total amount of loan given out by the bank amounted to 150,389 million,
while this figure shot up to Rs. 220,760 million in the flowing year.

Export-Import Bank Of India and Foreign Trade

Export-Import Bank of India plays the role of source of finance, promoter, coordinator
and consultation to India's Foreign Trade. The bank is the coordinator of the Working
Group Mechanism for the clearance of projects, service exports and deferred payment
exports. This group comprises of Exim Bank and Government of India representatives
from the Ministries of Finance, Commerce and external Affairs, Export Credit Guarantee
Corporation of India Ltd, commercial banks that are certified foreign exchange dealers
and the Reserve Bank of India. This working group gives clearance to contracts
sponsored by Exim Bank or commercial banks and operates as a single window
mechanism for clearance of export proposal terms

Exim Bank is fully owned by the Government of India and is managed by the Board of
Directors with repatriation from Government, financial instiutions, banks and business
community. The Export- Import Bank of India (Exim Bank) provides financial assistance
to promote Indian exports through direct financial assistance, overseas investment
finance, term finance for export production and export development, pre-shipping credit,
buyer's credit, lines of credit, relending facility, export bills redixcounting, refinance to
commercial banks. The Exim Bank also extends non-founded facility to Indian exporters
in the form of guarantees. The diversified lending programme of the Exim Bank now
covers various stagesof exports, i.e., from the developemnt of export makers to
expansion of production capacity for exports, producton capacity for exports, production
for exports and post- shipment financin. The Exim Bank's focus is on export of
manufactured goods, project exports, expoports, of technology services and exports of
computers software.

FINANCING PROGRAMMES
Loans to Indian Companies
Deferred payment exports : Term finance is provided to Indian exporters of eligible goods
and services which enables them to offer deferred credit to overseas buyers. Deferred
credit can also cover Indian consultanc, technology and other services. Commercial
banks participate in this programme directly or under risk syndication arrangements.

Preshipment credit : finance is available form Exim Bank for companies executing export
contracts involving cycle time exceeding six months. The facility also enables provision of
rupee mobilisation expenses for construction/turnky project exporters.

Term loans for export prodcution : Exim Bank provides term loans/deferred payment
guarantees to 100% [Link] units, units in free trade zones and computer
software exporters. In commaboration with International Finance
[Link], Exim Bank provides loans to enable small and medium
enterprises upgrade export production capability. Facilities for deeded exports; Deemed
exports are eligible for funded and non- funded facilities from Exim Bank.

Overseas Investment finance : Indian companies establishing joint ventures overseas are
provided finance towards their equity contribution in the joint venture.

Finance for export marketing : This programme, which is a component of a World Bank
loan, helps exporters implement their export market development plans.

Loans to Foreign Goverments, Companies and financial Institutions

Overseas Buyer's Credit : Credit is directly offered to foreign entities for import of eligible
goods and related services,on deferred payment.

Lines of Credit : Besides foreign goverments, finance is available to foreign finandial

institutions and goverment agencies to on-lend in the respective country for import of
goods and services from India.

Relending Facility to Banks Overseas : Relending facility is extended to banks overseas

to enable them to provide term finance to their clients world-wide for imports
from India.

Loans to Commercial Banks in India

Export Bills Rediscounting : Commercial Banks in India who are authorised to deal in
foreign exchange can rediscount their short term export bills with Exim Banks, for an
unexpired usance period of not more than 90 days.

Refinance of Export Credit : Authorised dealers in foreign exchange can obtain from Exim
Bank 100% refinance of de3ferred payment loans extended for export of eligible Indian
goods.
 Guaranteeing of Obligations
Exim Bank participates with commercial banks in India in the issue of guarantees
required by Indian companiesfor the export contracts and for exzewcution of overseas
construction and turnkey projects.

1. What is Export-Import Bank of India? What are its objectives?

2. What is the place of Exim Bank in the institutional structure for financing developmental needs?
3. What are the types of services provided by Exim Bank?
4. How does Exim Bank support Indian consultants to secure assignments overseas?
5. 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?
6. What are the various types of financial facilities provided by Exim Bank to Indian Companies for
export capability creation?
7. What type of financial assistance is extended by Exim Bank in setting up joint ventures?

Technology Upgradation Fund Scheme for Textile and Jute Industries

1. What is Export-Import Bank of India? What are its objectives?

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.

Top

2. What is the place of Exim Bank in the institutional structure for financing developmental needs?

There are apex institutions in the country, which deal with major economic activities, viz. industry, agriculture
and foreign trade. The Industrial Development Bank of India extends term industrial loans; the National Bank
for Agricultural loans; and the Exim Bank extends term loans for foreign trade. All these institutions are
wholesale banks. They, therefore work closely with commercial banks and other state level financial
institutions that operate the retail banking system in the country.

Top

3. What are the types of services provided by Exim Bank?

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.

Top
4. How does Exim Bank support Indian consultants to secure assignments overseas?

Exim Bank encourages Indian consultants to gain and enhance their international exposure by assisting them
in securing assignments overseas.

Assignments are awarded under programme sponsored by International Finance Corporation (IFC) in
Washington to promote private sector development in select countries and regions. Arrangements set in place
cover:

• Africa Project Development Facility

• African Management Services Company
• Africa Enterprise Fund
• South-east Europe Enterprise Development Facility
• Mekong Project Development Facility
• Business Advisory and Technical Assistance Services (BATAS)
• Other Technical Assistance & Trust Funds

Exim Bank assists these agencies in the recruitment of Indian consultants and meets the professional fees of
the consultant selected by IFC.

Consultancy assignments undertaken comprise pre-feasibility studies, project and investment related services,
management information systems, operations and maintenance support mainly for SMEs in a variety of
sectors like agriculture, agro-industry, consumer goods, light engineering, telecom.

Top

5. 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.,

Non-Funded

• Bid Bond
• Advance Payment Guarantee
• Performance Guarantee
• Guarantee for release of Retention Money
• Guarantee for raising Borrowings Overseas
• Other guarantees

Funded

• 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

Top

6. What are the various types of financial facilities provided by Exim Bank to Indian Companies for
export capability creation?

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
• Import Finance
• 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

Top

7. What type of financial assistance is extended by Exim Bank in setting up joint ventures?

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-Import Bank of India- Agri Business Group

The EXIM bank of India was established by Govt of India for providing financial assistance to
exporters and importers, and for functioning as the principal financial institution for
coordinating the working of institutions engaged in financing export and import of goods and
services with a view to promoting the country’s international trade.
It is further classified into Operating Groups namely:
Corporate Banking Group, which handles a variety of financing programmes for Export
Oriented Units (EOUs), Importers, and overseas investment by Indian companies. Project
Finance / Trade Finance Group handles the entire range of export credit services such as
supplier's credit, pre-shipment credit, buyer's credit, finance for export of projects &
consultancy services, guarantees, forfeiting etc.
Lines of Credit Group Lines of Credit (LOC) is a financing mechanism that provides a safe
mode of non-recourse financing option to Indian exporters, especially to SMEs, and serves as
an effective market entry tool.
Agri Business Group, to spearhead the initiative to promote and support Agri-exports. The
Group handles projects and export transactions in the agricultural sector for financing.
Small and Medium Enterprises Group to the specific financing requirements of export
oriented SMEs. The group handles credit proposals from SMEs under various lending
programmes of the Bank.
Export Services Group offers variety of advisory and value-added information services
aimed at investment promotion
Fee based Export Marketing Services Bank offers assistance to Indian companies, to
enable them establish their products in overseas markets.
Support Services groups, which include: Research & Planning, Corporate Finance, Loan
Recovery, Internal Audit, Management Information Services, Information Technology, Legal,
Human Resources Management and Corporate Affairs.
Some of the Agri Business related Schemes run by EXIM Bank:
The Indian agri sector can avail of a comprehensive range of products and services that Exim
Bank offers. Broadly, these can be classified into three categories:

1. Export Credit

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.

2. Finance for Export Oriented Companies

Exim Bank also offers loans for financing Export Oriented Companies which may be
categorized as under:
i. Project Finance

� Finance for new projects, expansion, and modernization projects.

�Finance for purchase of equipment both imported as well as indigenous.
�Working Capital both short term as well as medium term.
ii. Overseas Investment Finance

Overseas investment by Indian companies may be in the form of Joint Ventures

(JVs) or Wholly Owned Subsidiaries (WOS). Exim Bank extends term loans 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.

iii. Special Programmes

 o 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.
o Export Product Development: Term Loan for product adaptation, pilot plants,
product/process development, etc.
o 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.
o Finance for Research & Development: Exim Bank also provides lending for
Research & Development activities for facilitating exports.

3. Advisory Services

Exim Bank offers advisory services to Indian exporters for facilitating forward linkage for
agri exports. Exim Bank's international network comprising overseas office, co-operation
partners, correspondent banks and financial institutions is leveraged to provide export
information on:

o Overseas markets/market segments.

o Direct marketing of product.
o Overseas business opportunities.
o Information on export/import regulations, finance, etc
Export-Import Bank Of India

About Export-Import Bank of India The Export-Import Bank of India, also

known as Exim Bank of India, is the leading export finance institution in the country. The
bank was set up in the year 1982 under the Export-Import Bank of India Act 1981. The
Government of India launched the Export-Import Bank Of India with an aim to augment
exports from India and also to combine the country's foreign trade and investment with
the overall economic growth. The bank began its operations as a supplier of export credit,
but has over the period evolved into an institution that plays a major role in partnering
Indian Industries including small and medium enterprises.

Export-Import Bank Of India Initiatives

Export-Import Bank of India has been one of the prime institutions that encourages
project exports from India. The bank offers wide-ranging services for enhancing the
prospect of Indian project exports. Exim Bank's Overseas Investment Finance program
gives a variety of facilities for Indian reserves and acquirements overseas. The facilities
consist of direct equity participation by the bank in the overseas venture and non-funded
activities by the overseas venture and loan to the Indian companies for equity
participation in the venture abroad. As part of Exim Bank's marketing Finance Program,
the bank offers support to small and medium enterprises in their export marketing efforts
consisting of financing the soft expenditure linking to completion of tactical and
systematic export market development plans.

Export-Import Bank Of India Objective

The primary objective of the Export-Import Bank of India is to provide financial

assistance to importers and exporters and function as the top financial institution. Some
of the services of the bank include: overseas investment finance, film finance, export
credit, finance for export oriented units and agricultural & SME finance. In the period of
2005- 2006 the total amount of loan given out by the bank amounted to 150,389 million,
while this figure shot up to Rs. 220,760 million in the flowing year.

Export-Import Bank Of India and Foreign Trade

Export-Import Bank of India plays the role of source of finance, promoter, coordinator
and consultation to India's Foreign Trade. The bank is the coordinator of the Working
Group Mechanism for the clearance of projects, service exports and deferred payment
exports. This group comprises of Exim Bank and Government of India representatives
from the Ministries of Finance, Commerce and external Affairs, Export Credit Guarantee
Corporation of India Ltd, commercial banks that are certified foreign exchange dealers
and the Reserve Bank of India. This working group gives clearance to contracts
sponsored by Exim Bank or commercial banks and operates as a single window
mechanism for clearance of export proposal terms
Exim Bank is fully owned by the Government of India and is managed by the Board of
Directors with repatriation from Government, financial instiutions, banks and business
community. The Export- Import Bank of India (Exim Bank) provides financial assistance
to promote Indian exports through direct financial assistance, overseas investment
finance, term finance for export production and export development, pre-shipping credit,
buyer's credit, lines of credit, relending facility, export bills redixcounting, refinance to
commercial banks. The Exim Bank also extends non-founded facility to Indian exporters
in the form of guarantees. The diversified lending programme of the Exim Bank now
covers various stagesof exports, i.e., from the developemnt of export makers to
expansion of production capacity for exports, producton capacity for exports, production
for exports and post- shipment financin. The Exim Bank's focus is on export of
manufactured goods, project exports, expoports, of technology services and exports of
computers software.

FINANCING PROGRAMMES
Loans to Indian Companies
Deferred payment exports : Term finance is provided to Indian exporters of eligible goods
and services which enables them to offer deferred credit to overseas buyers. Deferred
credit can also cover Indian consultanc, technology and other services. Commercial
banks participate in this programme directly or under risk syndication arrangements.

Preshipment credit : finance is available form Exim Bank for companies executing export
contracts involving cycle time exceeding six months. The facility also enables provision of
rupee mobilisation expenses for construction/turnky project exporters.

Term loans for export prodcution : Exim Bank provides term loans/deferred payment
guarantees to 100% [Link] units, units in free trade zones and computer
software exporters. In commaboration with International Finance
[Link], Exim Bank provides loans to enable small and medium
enterprises upgrade export production capability. Facilities for deeded exports; Deemed
exports are eligible for funded and non- funded facilities from Exim Bank.

Overseas Investment finance : Indian companies establishing joint ventures overseas are
provided finance towards their equity contribution in the joint venture.

Finance for export marketing : This programme, which is a component of a World Bank
loan, helps exporters implement their export market development plans.

Loans to Foreign Goverments, Companies and financial Institutions

Overseas Buyer's Credit : Credit is directly offered to foreign entities for import of eligible
goods and related services,on deferred payment.

Lines of Credit : Besides foreign goverments, finance is available to foreign finandial

institutions and goverment agencies to on-lend in the respective country for import of
goods and services from India.

Relending Facility to Banks Overseas : Relending facility is extended to banks overseas

to enable them to provide term finance to their clients world-wide for imports
from India.

Loans to Commercial Banks in India

Export Bills Rediscounting : Commercial Banks in India who are authorised to deal in
foreign exchange can rediscount their short term export bills with Exim Banks, for an
unexpired usance period of not more than 90 days.

Refinance of Export Credit : Authorised dealers in foreign exchange can obtain from Exim
 Bank 100% refinance of de3ferred payment loans extended for export of eligible Indian
goods.

Guaranteeing of Obligations
Exim Bank participates with commercial banks in India in the issue of guarantees
required by Indian companiesfor the export contracts and for exzewcution of overseas
construction and turnkey projects.

8. What is Export-Import Bank of India? What are its objectives?

9. What is the place of Exim Bank in the institutional structure for financing developmental needs?
10. What are the types of services provided by Exim Bank?
11. How does Exim Bank support Indian consultants to secure assignments overseas?
12. 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?
13. What are the various types of financial facilities provided by Exim Bank to Indian Companies for
export capability creation?
14. What type of financial assistance is extended by Exim Bank in setting up joint ventures?

Technology Upgradation Fund Scheme for Textile and Jute Industries

1. What is Export-Import Bank of India? What are its objectives?

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.

Top

2. What is the place of Exim Bank in the institutional structure for financing developmental needs?

There are apex institutions in the country, which deal with major economic activities, viz. industry, agriculture
and foreign trade. The Industrial Development Bank of India extends term industrial loans; the National Bank
for Agricultural loans; and the Exim Bank extends term loans for foreign trade. All these institutions are
wholesale banks. They, therefore work closely with commercial banks and other state level financial
institutions that operate the retail banking system in the country.

Top

3. What are the types of services provided by Exim Bank?

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.
 Top

4. How does Exim Bank support Indian consultants to secure assignments overseas?

Exim Bank encourages Indian consultants to gain and enhance their international exposure by assisting them
in securing assignments overseas.

Assignments are awarded under programme sponsored by International Finance Corporation (IFC) in
Washington to promote private sector development in select countries and regions. Arrangements set in place
cover:

• Africa Project Development Facility

• African Management Services Company
• Africa Enterprise Fund
• South-east Europe Enterprise Development Facility
• Mekong Project Development Facility
• Business Advisory and Technical Assistance Services (BATAS)
• Other Technical Assistance & Trust Funds

Exim Bank assists these agencies in the recruitment of Indian consultants and meets the professional fees of
the consultant selected by IFC.

Consultancy assignments undertaken comprise pre-feasibility studies, project and investment related services,
management information systems, operations and maintenance support mainly for SMEs in a variety of
sectors like agriculture, agro-industry, consumer goods, light engineering, telecom.

Top

5. 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.,

Non-Funded

• Bid Bond
• Advance Payment Guarantee
• Performance Guarantee
• Guarantee for release of Retention Money
• Guarantee for raising Borrowings Overseas
• Other guarantees

Funded

• 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

Top

6. What are the various types of financial facilities provided by Exim Bank to Indian Companies for
export capability creation?

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
• Import Finance
• 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

Top

7. What type of financial assistance is extended by Exim Bank in setting up joint ventures?

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-Import Bank of India- Agri Business Group

The EXIM bank of India was established by Govt of India for providing financial assistance to
exporters and importers, and for functioning as the principal financial institution for
coordinating the working of institutions engaged in financing export and import of goods and
services with a view to promoting the country’s international trade.
It is further classified into Operating Groups namely:
Corporate Banking Group, which handles a variety of financing programmes for Export
Oriented Units (EOUs), Importers, and overseas investment by Indian companies. Project
Finance / Trade Finance Group handles the entire range of export credit services such as
supplier's credit, pre-shipment credit, buyer's credit, finance for export of projects &
consultancy services, guarantees, forfeiting etc.
Lines of Credit Group Lines of Credit (LOC) is a financing mechanism that provides a safe
mode of non-recourse financing option to Indian exporters, especially to SMEs, and serves as
an effective market entry tool.
Agri Business Group, to spearhead the initiative to promote and support Agri-exports. The
Group handles projects and export transactions in the agricultural sector for financing.
Small and Medium Enterprises Group to the specific financing requirements of export
oriented SMEs. The group handles credit proposals from SMEs under various lending
programmes of the Bank.
Export Services Group offers variety of advisory and value-added information services
aimed at investment promotion
Fee based Export Marketing Services Bank offers assistance to Indian companies, to
enable them establish their products in overseas markets.
Support Services groups, which include: Research & Planning, Corporate Finance, Loan
Recovery, Internal Audit, Management Information Services, Information Technology, Legal,
Human Resources Management and Corporate Affairs.
Some of the Agri Business related Schemes run by EXIM Bank:
The Indian agri sector can avail of a comprehensive range of products and services that Exim
Bank offers. Broadly, these can be classified into three categories:

1. Export Credit

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.

2. Finance for Export Oriented Companies

Exim Bank also offers loans for financing Export Oriented Companies which may be
categorized as under:
i. Project Finance

�Finance for new projects, expansion, and modernization projects.

�Finance for purchase of equipment both imported as well as indigenous.
�Working Capital both short term as well as medium term.
ii. Overseas Investment Finance

Overseas investment by Indian companies may be in the form of Joint Ventures

(JVs) or Wholly Owned Subsidiaries (WOS). Exim Bank extends term loans 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.

iii. Special Programmes

 o 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.
o Export Product Development: Term Loan for product adaptation, pilot plants,
product/process development, etc.
o 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.
o Finance for Research & Development: Exim Bank also provides lending for
Research & Development activities for facilitating exports.

3. Advisory Services

Exim Bank offers advisory services to Indian exporters for facilitating forward linkage for
agri exports. Exim Bank's international network comprising overseas office, co-operation
partners, correspondent banks and financial institutions is leveraged to provide export
information on:

o Overseas markets/market segments.

o Direct marketing of product.
o Overseas business opportunities.
o Information on export/import regulations, finance, etc