Finding wings to fly higher in corporate skies
We offer a range of financing programmes to enhance the export-competitiveness of Indian companies. We provide 360 degree support to export-oriented units by catering to long-term loan requirements that help exporters finance new projects, expand, modernize or purchase new equipment or carry out R&D; and cater to their working capital and overseas investment requirements.
We have played a catalytic role in building "brand India" by partnering with micro, small and medium enterprises (MSMEs) and enhancing their global footprint. Not only that, we have made significant strides in contributing towards economic development through our Grassroots Initiative and Development programme. Our aim is to strengthen the export capabilities of our rural enterprises and ensure all-round economic development and to enhance the purchasing power from the bottom of the pyramid.
FINANCE FOR CORPORATES
Research & Development Finance For Export Oriented Units
Our objective is to encourage Indian exporters to invest more in their R&D spend to develop new products and processes that will enhance export capabilities. With the need to bridge the funding gap of Indian exporters in the research space at our core, we have a dedicated R&D Financing Programme. Under this programme, financing can be extended to any export oriented company. Alternatively, a special purpose vehicle promoted by the company can be created irrespective of the nature of the industry.
Eligibility
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Export oriented firms with exports (actual or projected) of at least 20% of annual turnover.
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R&D finance is generally extended up to 7 years. However, longer tenors with suitable interest rates are considered on a case-to-case basis. A company can opt for our structured repayment option to match its cash flow.
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Upto 80% of the total project cost can be funded.
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Security to include, appropriate charge on the assets, Corporate Guarantee, charge/assignment on the regulatory approval/IPR, personal guarantee etc.
Contact us for further information
Pre-Shipment/Post-Shipment Credit Programme:
We understand that a primary obstacle for Indian exporters is the lack of a dependable source of financing. We attempt to bridge this gap by extending export credit to Indian exporters to meet a wide range of their trade financing requirements. We provide working capital finance by way of pre-shipment credit and post-shipment credit. We also extend non-fund based limits including issuance of Letters of Credit (both foreign & inland) and Bank Guarantees (both foreign & inland) as part of our export credit assistance to clients. The credit limits are generally operated as a running account facility. The facilities can be drawn in either Indian Rupee or Foreign Currency.
Eligibility
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Indian exporters with a proven track record.
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The limit should be within the MPBF of Borrower's assessed bank finance.
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Margin of around 15%-20% under pre-shipment and around 10% under post-shipment.
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Adequate security to be provided. Typical security includes appropriate charge on the current assets including export receivables, ECGC cover, etc.
Contact us for further information
Lending Programme for Export Oriented Units:
In order to enhance international competitiveness and the capabilities of export-oriented Indian companies, we provide term loans to finance various capital expenditures including certain soft expenditures of such companies. Loans or guarantees are extended for the expansion, modernization, upgradation or diversification projects. This includes acquisition of equipment, technology export marketing, export product development and setting up of Software Technology Parks.
Import Finance Programme
We offer a comprehensive range of products and services covering financial needs of borrower companies at all stages of business cycle to enhance the competitiveness of Indian companies. The Companies involved in manufacturing/services, having only domestic operation and no exports, are eligible for financing from Exim Bank for import of equipment/machineries for domestic projects. Financing is done towards bulk import of machineries, services for capacity expansion, modernization and infrastructure projects.
Production Equipment Finance Programme
We extend credit to eligible export oriented enterprises to enhance the export capability creation through financing non-project related equipment procurement. We offer loan for acquisition of plant and machinery, purchase of ancillary equipment including equipment for packaging, pollution control, utilities, quality assurance etc. The loans are flexible and can be extended for equipment procurement for balancing, replacement, modernization and capacity up-gradation.
Eligibility
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Companies with a minimum export orientation (actual/projected) of 10% of their annual turnover, or exports of ₹5 crore p.a., whichever is lower (inclusive of exports through Export/Trading Houses)
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Available in Indian Rupees and in foreign currency (as per extant RBI guidelines)
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Commercial interest rates are charged on the term finance
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The tenor range is usually 7-10 years with a suitable moratorium, and repayments in suitable monthly/ quarterly installments
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Promoter margin is a minimum 20% and appropriate charge on the fixed assets of the company/project plus any other acceptable security including personal guarantees may be stipulated
Contact us for further information
EXIM
Advantage
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Enhancing competitiveness of export-oriented units by financing R&D capabilities
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Working capital needs and funding requirements taken care of at pre-shipment and post-shipment stages
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360 degree support to export-oriented companies
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Including cost coverage for regulatory approvals
FINANCE FOR GRASSROOTS ENTERPRISES
We believe in promoting all round development of the economy and have thus lent our hand of support to enterprises based out of rural areas of the country through our GRID programme. Through this initiative, we promote grassroots initiatives/technologies, particularly those having export potential. We seek to help artisans/producer groups/clusters/small enterprises across the country to realize remunerative return on their produce essentially through facilitating exports from these units.
We understand the needs of such organisations and offer
tailor-made financial products to cater to their needs. We work towards developing a robust, vibrant and holistic approach by providing assistance at various stages of product development / business cycle. The broad areas that we support include capacity building, matching grant support for product/process certification and design and packaging enhancement, working capital finance, term lending for development of common facility centres, construction of raw material bank, technology upgradation and creation of export capability.
Eligibility:
The organisations eligible for support should meet various criteria including, (but not limited to) the following:
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Should be a legal entity registered under respective State/Central Govt. Act as a Society, Trust, Co-operative, Private Limited Company, Producer Company, NGO, Proprietorship etc
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Should be working with communities at grassroots level for promoting income generating activities based on traditional skills
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Should have a proven track record of creating /adopting sustainable livelihood model which could be upscaled and replicated across the geographies sharing similar characteristics (demographic, cultural, socio-economic similarities, etc)
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Should be exporting, either directly or indirectly or should have plans for venturing into export markets
Contact us for further information
EXIM
Advantage
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Good understanding of rural enterprises and their requirements for export capability creation
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Quick and competitive finance both in Indian Rupee and foreign currency, customized to the needs of the organizations
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Flexible repayment options
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Capacity building and support for developing marketable products
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Training and market advisory support
Guaranteed Emergency Credit Line
In response to the disruptions caused by the unprecedented COVID-19 pandemic, the Hon’ble Finance Minister, unveiled a relief package aimed at Micro, Small and Medium Enterprises (MSMEs). Subsequently, National Credit Guarantee Trustee Co. Ltd. (NCGTC), has introduced the Emergency Credit Line Guarantee Scheme (ECLGS) for providing 100% guarantee coverage for additional working capital term loans to eligible MSMEs / Business Enterprises. Features of the Scheme are as under:
Name of the Facility:
Guaranteed Emergency Credit Line (GECL)
Facility Type:
Long Term Working Capital
Eligibility:
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Borrower accounts with outstanding loans of up to ₹50 crore as on 29.2.2020 [Total Outstanding Amount would comprise of the on-balance sheet exposure], and annual turnover of up to ₹250 crore in FY 2019-20.
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The Scheme is valid for existing customers on the books of Exim Bank.
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Borrower accounts should not be more than 60 days past due as on 29th February, 2020
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In order to be eligible, the borrower must be GST registered in all cases where such registration is mandatory. This condition will not apply to borrowers that are not required to obtain GST registration.
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The last date of disbursement under ECLGS 1.0 shall be September 30, 2021.
Loan Amount:
Maximum up to 20% of the entire fund based outstanding with Exim Bank as on 29.02.2020.
Repayment:
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Tenor: Maximum 4 years from the date of disbursement
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Moratorium: 12 months for principal only, interest is payable at monthly intervals
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The principal shall be repaid in 36 equal installments after the moratorium period is over.
For further details on the above Facility, please contact your respective Relationship Manager in Exim Bank.
For detailed guidelines and FAQs on ECLGS, visit https://www.eclgs.com/
Emergency Credit Line Guarantee Scheme (ECLGS)
In response to the disruptions caused by the unprecedented COVID-19 pandemic, the Hon’ble Finance Minister, unveiled a relief package aimed at Micro, Small and Medium Enterprises (MSMEs). Subsequently, National Credit Guarantee Trustee Co. Ltd. (NCGTC), has introduced the Emergency Credit Line Guarantee Scheme (ECLGS) for providing 100% guarantee coverage for additional working capital term loans to eligible MSMEs / Business Enterprises.
The main objective of the Scheme is to provide an incentive to Member Lending Institutions (MLIs), i.e., Banks, Financial Institutions (FIs) and Non-Banking Financial Companies (NBFCs), to increase access to and enable availability of additional funding facility to MSME borrowers, by providing them 100% credit guarantee by National Credit Guarantee Trustee Co. Ltd. (NCGTC) for any losses suffered by them due to non-repayment of the GECL funding by borrowers. The NCGTCfrom time to time has issued the operational guidelines of the ECLGS packages. The salient features of the scheme are as under:
Purpose of the Scheme :
To provide 100% guarantee coverage for the Guaranteed Credit Line (GECL) assistance of loan outstanding as on February 29, 2020 or March 31, 2021, whichever is higher, to eligible borrowers in form of additional term loan / working capital facility / non – funded facility (as per the prevalent guidelines of the scheme from time to time) to meet operational liabilities and restart their businesses, which have been impacted due to the COVID-19 crisis.
Validity:
The validity of the ECLGS has been extended up to March 31, 2022 or till guarantees for an amount of ` 4.50 lakh crore is issued by NCGTC, whichever is earlier.
Credit facility eligible under the Guarantee Coverage Under ECLGS 1.0
the borrowers meeting the eligibility criteria as defined by the guidelines, can be provided with assistance of up to 20% of the total outstanding credit (fund based only) as on Feb 29, 2020.
Under ECLGS 1.0 Extension:
the borrowers meeting the eligibility criteria as defined by the guidelines, can be provided with assistance of up to 30% of the total outstanding credit (fund based only and excluding the availed ECLGS limit) as on Feb 29, 2020, or Mar 31, 2021, whichever is higher.
Under ECLGS 2.0
the borrowers from 26 identified sectors based on the Kamath Committee and the Healthcare Sector, meeting the eligibility criteria, as defined by the guidelines, can be provided with assistance of up to 20% of the total outstanding credit (fund-based facility and / or non – fund-based facility or a mix of two) as on Feb 29, 2020.
Under ECLGS 2.0 Extension
the borrowers from 26 identified sectors based on the Kamath Committee and the Healthcare Sector, meeting the eligibility criteria, as defined by the guidelines, can be provided with assistance of up to 30% of the total outstanding credit (fund-basedfacility and / or non-fund-based facility or a mix of two) as on February 29, 2020, or March 31, 2021, whichever is higher.
Under ECLGS 3.0
the eligible borrowers who meet the eligibility criteria as defined in the guidelines and falling under stressed sectors like Hospitality, Travel & Tourism and the Leisure & Sporting sector, Civil Aviation etc. can be provided with assistance of up to 40% of their total outstanding limit (fund based only) as on Feb 29, 2020
Under ECLGS 3.0 Extension
the eligible borrowers who meet the eligibility criteria as defined in the guidelines and falling under stressed sectors like Hospitality, Travel & Tourism and the Leisure & Sporting sector, Civil Aviation etc. can be provided with assistance of up to 40% of their total outstanding limit (fund based only and excluding the availed ECLGS limit) as on Feb 29, 2020 or Mar 31, 2021, whichever is higher. The maximum assistance is capped at INR 200 crore
Under ECLGS 4.0
a maximum of up to INR 2 crore can be granted to existing Hospitals/Nursing homes/Clinics/Medical colleges/units engaged in the manufacturing of liquid oxygen, oxygen cylinders etc. for the setting up of on-site oxygen producing plants, and they should not be Non-Performing Assets (NPA), as on Mar 31, 2021.
Key highlights:
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Sanction under ECLGS is valid up to March 31, 2022, and disbursement out of the fund-based facility can be availed up to June 30, 2022. Facility under the non-fund-based portion can be availed during the 5-year tenor of the facility sanctioned, provided the first tranche has been utilized on or before June 2022.
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A separate loan account shall be opened for the Borrower for extending additional credit under GECL. This account will be distinct from the existing loan account (s) of the Borrower.
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No pre-payment penalty shall, however, be charged by the MLIs in the case of early repayment.
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The credit under GECL will rank second charge with the existing credit facilities in term of cash flows (including repayments) and securities, with charge on the assets financed under the Scheme to be created within a period of 3 months from the date of disbursal or till June 30, 2022, but in any case, prior to the account being classified as NPA.
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Days Past Due status as on February 29, 2020 / March 31, 2021, to be checked across all lending institutions from credit bureau, while availing assistance under ECLGS.
Nil processing charges and waiver of foreclosure/prepayment charges
No additional collateral requirement.
For detailed operating guidelines and FAQs on ECLGS, please visit https://www.eclgs.com/.
