Introduction to EXIM Funding
Exim funding may refer to the Export-Import Bank of India (Exim Bank) or the Export-Import Bank of the United States.
The Exim Bank is a financial institution that provides financial assistance to exporters and importers. It was established in 1982 by the Government of India to promote, facilitate, and finance India’s international trade. The bank’s functions include:
· Providing credit to exporters and importers
· Ensuring safe and secure trade
· Formulating policies and guidelines for Indian import and export
· Extending lines of credit (LOCs) to overseas governments, financial institutions, regional banks, and other overseas entities to finance India’s exports
· Offering financial products and services such as:
o Buyer’s credit
o Corporate banking
o Lines of credit
o Overseas investment finance
o Project exports
o Ubharte Sitare Programme
The Export-Import Bank of the United States provides financial assistance to American businesses by offering loans, loan guarantees, and insurance.
XIM Bank’s initiatives include:
· Providing a variety of funded and non-funded facilities, guarantees, and information
· Helping project exports from India
· Supporting Indian project exporters to obtain contracts in various sectors, including mining, energy, and transportation
· Extending credit directly to overseas buyers of projects from India
· Acting as a growth engine for industries and SMEs
· Providing a wide range of products and services
Some documents required for export finance may include:
· Shipping bill
· Commercial invoice
· Packing list
· Bill of lading
· Foreign exchange control form (SDF)
· Terminal handling receipt
Benefits of EXIM Policy
· Promotes international trade.
· Facilitates technology transfer.
· Improves balance of payments.
· Enhances competitiveness.
· Boosts economic development and growth.
· Creates employment opportunities.
· Helps in enforcing liberalisation policy.
· Increases foreign investment value.
Objectives of EXIM Policy
· To increase growth in exports and imports in India.
· To stimulate long-term economic growth by expanding access to components, intermediates, essential raw materials, consumables and capital goods.
· To improve agriculture service and industry competitiveness, create new employment opportunities and encourage attaining internationally accepted quality standards.
· To supply high-quality goods and services at an affordable cost.
· To encourage economic expansion by providing access to necessary raw materials, capital goods, installations, consumables, intermediate products and essential elements for expanding production and providing services.
· To improve the technological productivity and potency of Indian agriculture, services and companies, thus enhancing competitive power while creating employment possibilities, and to accomplish globally acknowledged quality norms.
· To supply consumers with fine-condition services and goods at globally competitive rates.