After obtaining a firm order from the buyer one can approach the Bank where he has current account and apply for a loan for export and after scrutinizing his documents the Bank authorities may release loan.

Exim Bank of India, a Government of India organisation extends full co operation and help to Export oriented firms for pre shipment credit and supplier's credit which enables exporters to extend term credit to buyers on eligible goods at the pre shipment stage.

Indian firms can avail One more service called Guarantee Facilities available with Exim Bank which guarantees to facilitate execution of export contracts and import transactions.

Risk protection against default payment by buyers on goods and services on credit terms provided by the Export credit Insurance and further exporters can avail protection against political and commercial risks.Political risk means a civil war or violence beyond the control of exporter, which cause shipment schedule change and subsequent delay in delivery of goods within the specified time. Commercial risk means insolvency of the buyer, by opting deliberate non payment on goods already agreed by them.

Exporters can also avail fee based marketing service assistance of the Bank, which enable them to establish their products in overseas markets.

Why Exporters Should Use Exim Bank?

Some of the following facilities are availabe in the Bank:

Short term financing and discounting of the Exporter's receivables covered under EXIMBANK's Export Credit Insurance. It covers the gap between the manufacturers production cost expended and their income from sales.

Post-Shipment Financing Facility of the bank can be availed directly or through arrangement with the various commercial banks. The exporter receives 85% to 100% of the value of the export invoice, upon shipment, by using this facility.

A credit sale of the exporter can be converted into a cash sale by which the exporter freeing up their capital for future exports.

Grace Period - A period representing 15 days after the invoice maturity date before penalty interest becomes applicable.

Reputed exporters can avail pre shipment finance to meet their reputable buyers order which will assist their processing costs including wages, raw materials purchase and other machinery etc.,

Bank's pre shipment guarantee enables exporters to meet their confirmed orders by repayment to commercial lenders on working capital loans and thereby bank's liability is discharged atonce upon shipment.

How to prepare project report to Bank to get loan?