Role of Exiim Bank
Role of Exiim Bank
Role of Exiim Bank
This article focuses on the Role of EXIM Bank of India in Foreign Investment. EXIM Bank is a fully owned
bank by the Government of India and is governed by the Board of Directors and gets tax return from the
government, various financial institutions, banks and business communities.
The main objective of Export-Import Bank (EXIM Bank) is to provide financial assistance to promote the
export production in India. The financial assistance provided by the EXIM Bank widely includes the
following:
The Export-Import Bank also provides non-funded facility in the form of guarantees to the Indian
exporters.
Delayed Payment Exports- Term loans are provided to those exporters who deal with exporting
of goods and services and this enables them to offer delayed credit to the foreign buyers. This
system of deferred credit covers Indian consultancies, technology, and other services.
Commercial banks take part in this program either directly or under risk syndication
arrangements.
Pre-shipment credit- Indian companies which are highly involved in the execution of export
activities beyond the cycle time of six months are funded by EXIM Bank. The construction or
turnkey project exporters enjoy the provision of rupee mobilization.
Term loans for export production- EXIM Bank offers term loans to the 100 percent export
oriented units, units involved in free trade zones, and exporters of various softwares in India.
EXIM bank also works in association with International Finance Corporation, Washington, to
provide financial assistance to the small scale and medium industrial units in terms of
ameliorating the export production capacity of these units in India. EXIM Bank also provides
funded and non- funded facilities to deemed exports from India.
Foreign Investment Finance- EXIM bank provides financial assistance for equity contribution to
the Indian companies who form Joint Venture with the foreign companies.
Financing export marketing- It helps the exporters carry out their export market development
plan in Indian market.
Foreign Buyer's Credit- the foreign players are entitled to a sum of financial assistance in order
to import goods and services on deferred payments
Lines of Credit- EXIM bank also offers financial assistance to the overseas financial institutions
and various government agencies for import of goods and services from India.
Reloaning Options to Foreign Banks- The foreign banks are entrusted with funding from EXIM
bank in order to provide the same to the their clients across the globe for importing of goods
from India.