Exim Bank:

Export-Import Bank of India is the premier export finance institution of the country. It commenced operations in 1982 under the Export-Import Bank of India Act 1981. The Government of India launched the institution with a mandate to not just enhance exports from India, but also to integrate the country’s foreign trade and investment with the overall economic growth.


  • To provide financial assistance to exporters and importers
  • To function as the principal financial institution for coordinating the working of institutions engaged in financing export and import of goods and services.
  • To promote the country’s international trade.
  • To act on business principles with due regard to public interest

The Exim bank offers 4 financial services

  1. Overseas Investment Finance
  2. Project Finance
  3. Line of credit
  4. Export Buyer’s Credit For the Overseas Buyer / Importer

1) Overseas Investment Finance:

Exim Bank encourages Indian companies to invest abroad for, inter alia, setting up manufacturing units and for acquiring overseas companies to get access to the foreign market, technology, raw material, brand, IPR etc. For financing such overseas investments, Exim Bank provides:

  • Term Loan
    • Working Capital
    • Assets acquisition
    • Equity Investment in another company
    • Acquisition of brand / copyrights /  patent etc
    • Acquisition of another company
  • Guarantee Facility

Commercial interest rates are charged on the term finance. The tenor range is usually 5-7 years with a suitable moratorium and repayments in suitable monthly/ quarterly installments.

Project Export:

Exim Bank extends funded and non-funded facilities for overseas turnkey projects, civil construction contracts, technical and consultancy service contracts as well as supplies.

  • Funded Facility
    • Pre-Shipment Finance
    • Post-Shipment Finance
  • Non-Funded Facility
    • Financial Guarantees

Line of Credit:

The Exim bank extends the line of credit to overseas Government or to the nominated agencies or financial institution in the form of a soft loan.

It enables buyers in overseas countries to import capital goods / project on deferred payment terms.

Export Buyers Credit:

The credit is extended by the Exim bank to the overseas buyer to enable them to import engineering goods & project from India on deferred payment terms


Reference: Exim Bank India