Import Export business is surrounded by many risks, especially if you do not have the required information and the right guidance.
At the time financial industry has changed to the modern day banking system. It has become the most reliable means of paying for goods between exporter and importer.
There is an importance of commercial banks in the Import Export as it improves the significance for both the Exporter and Importer, helps in ease of Payment and things related to Foreign Branch Banking.
Export-Import Bank of India (EXIM Bank)
- Financial Institution of Government
- Financial Assistance to Indian Exporters
- Lines of Credit (LOC)
- Buyer’s Credit-National Export Insurance Account (BC-NEIA) program
- Research and Development (R&D)
- Provide Assistance
Financial Institution of Government
It is a specialized financial institution, wholly owned by Government of India, set up in 1982. It focuses on financing, facilitating and promoting foreign trade of India.
Its share capital is 1,300 crore which is received during the year from Government of India.
Financial Assistance to Indian Exporters
- Delayed Payment Exports
Term loans are given to those exporters who deal with exporting of goods and services. Along with this, it enables them to offer delayed credit to the foreign buyers.
- Pre-shipment credit
EXIM Bank provides funds to the Indian companies involved in the execution of export activities that too beyond 6 months.
The provision of rupee mobilization is enjoyed by the construction exporters or turnkey project exporters.
- Term loans for export production
It offers term loans to 100% export-oriented units involved in free trade zones, and exporters of various soft-wares in India.
On the other hand, EXIM bank also works in association with International Finance Corporation, Washington.
It provides financial assistance to the small and medium scale industrial units to increase the export production capacity in India.
- Foreign Investment
It provides financial assistance to the Indian companies who form Joint Venture with the foreign companies for equity contribution.
- Financing export marketing
It helps the exporters to carry out their export market development plan in the Indian market.
Lines of Credit (LOC)
LOC of EXIM Bank is a risk-free, non-recourse export financing option available to Indian exporters to promote their exports.
The bank has extended LOC to overseas governments, regional banks, financial institutions and other overseas entities. Also it helps the buyers in those countries to finance India’s exports.
Buyer’s Credit-National Export Insurance Account (BC-NEIA) program
Not only this but the bank also helps to enhance project exports and the funding options with introduction of (BC-NEIA) program.
Exim bank has two-way technology transfer by financing the imports of technology into India.
In addition, it helps Indian companies to do Investment in abroad for setting up joint ventures, subsidiaries or undertaking acquisitions.
Research and Development (R&D)
To promote hi-tech exports from India, the Bank has a programme to finance research and development (R&D) activities of export-oriented companies.
Therefore, Commercial banks arrange deals between their customers on a global level, including strategic partnerships and project fulfillment agreements.
The Bank gives assistance in helping Indian firms to locate overseas distributors, buyers and partners for their products and services.
Exim Bank puts special emphasis on enhancing export capabilities and international competitiveness of Indian companies.
Digital Exim is entrusted by many importers and exporters for its best services.
If you are willing to start or expand your international business, you may contact us! We will provide you with best customer experience.
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What are the requirements for opening a current account for export import business?