The Export-import bank of India (EXIM Bank) was set up in January 1982 as a statutory corporation wholly owned by central government. Its paid up capital in 1988-89 was Rs 220.50 crores.
Activities performed by EXIM Bank:
- It grants direct loans in India and outside for the purpose of imports and exports;
- Refinances loans to banks and other notified financial institutions for the purpose of international trade ;
- Rediscounts usance export bills for banks;
- Provide overseas investment finance for Indian companies toward their equity participation in joint venture abroad and guarantees, along with banks, obligations on behalf of project exporters;
- It is also a co-coordinating agency in the field of international finance and it undertakes development of merchant banking activities in relation to export oriented industries;
Thus it provides fund based as well as non fund based assistance in the foreign trade sector.
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:
- Direct financial assistance
- Direct financial assistance
- Foreign investment finance
- Term loaning options for export production and export development
- Pre-shipping credit
- Buyer’s credit
- Lines of credit
- Re-loaning facility
- Export bills rediscounting
- Refinance to commercial banks
The Export-Import Bank also provides non-funded facility in the form of guarantees to the Indian exporters.
- Development of export makers
- Expansion of export production capacity
- Production for exports
- Financing post-shipment activities
- Export of manufactured goods
- Export of projects
- Export of technology and software’s