Export Import Bank Of India Schemes for Export credit

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Export Import Bank Of India Schemes for Export credit:-

a) Direct Financial Assistance to Exporters:-
Under this scheme, assistance is provided in the form of credit on medium term basis for periods exceeding 6 months to enable the exporters to extend deferred credit to importers. Indian exporters of plant and machinery and equipment are eligible for this scheme. Assistance is generally in the form of deferred payment suppliers credit foreign currency6 and rupee term loans to project exporters and finance for export consultancy and technology services. So far the scheme can facilitate the exports of products like commercial vehicles, transport material, construction projects, textile machinery, mining equipments, glass making machinery and transmission line projects. As per the provisions of the scheme, the assistance may be granted in participation with commercial banks but the commercial banks have been hesitant to assume larger risks involved in bigger projects. After the introduction of the Risk Syndication Scheme, commercial banks have been encouraged to assume part of the risks of EXIM banks funding for various export contracts. The rate of interest charged on the financial assistance extended by the EXIM bank has been 8.5%p.a.
b) Finance for Export Oriented units:-
This program was introduced by EXIM bank in 1984 to provide term finance to export oriented finance. Under this program, EXIM bank offers financial assistance to export oriented units on concessional terms with a view to enhance their competitiveness in overseas markets. Export oriented units set up in Free Trade Zones and export units recognized by the Government of India are 100% export oriented and are eligible for financial assistance under this program.
c) Export Bills rediscounting:-
EXIM bank provides funds, under this scheme, for a period of not more than 90 days against short term usance export bills that have an unexpired usance of a maximum of 90 days. Commercial banks in India which are eligible to deal in foreign exchange are allowed to rediscount their short term export bills with EXIM bank for unexpired usance period of not more than 90 days. This enables banks to fund post-shipment export credit to Indian exporters. The limit authorized by the RBI for the program is Rs 50 crores. The interest rates chargeable to such assistance are 7.5%.p.a.



d) Finance for Export Marketing:-
The Export Marketing Fund (EMF) was started by EXIM bank to finance Indian companies export marketing activities. Such finance covers upto 50% of the total cost of marketing activities incurred by the exporters in the form of grants. The EMF program covers desk research, minor product overseas travel, product inspection services, establishing overseas operations and travel to India by buyers overseas.