LINES OF CREDITS

LINES OF CREDITS

PURPOSE OF LINES OF CREDITS

-          Export Promotion for Capital Goods, industrial manufactures on deferred payment terms.

-          Importer gets benefits of payments in instalments for longer periods.

-          Exporters gets payment on shipment from EXIM Bank

MAIN FEATURES

-          EXIM bank is Lender

-          Nominated foreign agency is Borrower

-          Terms and condition of each credit line contains name of borrower, minimum contract value, Amount of Credit, Effective date of credit agreement, last date of opening L/C, Disbursement date, list of goods.

MECHANISM OF LINES OF CREDIT

-          Buyer approach borrower for allocation of funds under credit line.

-          Contract should provide for inspection by buyer’s nominated agent.

-          Delivery period stipulated in contract should be within disbursement date

-          Buyer completes import formalities and approach borrower for approval.  Borrower forward copies of the contract to EXIM Bank for final approval.

-          EXIM Bank advises approval to borrower with copy to Exporter

-          Buyer establishes sight irrevocable L/C and advised to exporter through designated bank.

-          Exporter ships the goods and presents documents for negotiation to designated bank.  Bank forward negotiated documents to buyer

-          EXIM bank reimburse the amount to negotiating bank for payment to exporter

-          EXIM Bank debits the borrower account and arrange interest and principal receivable on due date as per terms of credit line.

BENEFITS

-          Credit sales converted to Cash sales

-          No exchange, interest rate and payment risks

-          Export promotion method.

 Please visit our website www.exportgenius.in for more information about Export and Import.