Exim Bank Project Loans – Global Business Funding

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Key Features of Exim Bank Project Loans

Purpose and Scope: Designed to finance capital expenditures for expansion, modernization, upgradation, or diversification projects. Supports project exports including engineering, procurement, and construction (EPC) projects, consultancy, technical know-how, and technology transfer. Funds can be used for setting up facilities like Software Technology Parks and importing equipment/machinery.
Multi-Currency Options: Loans are offered in Indian Rupees or foreign currencies (USD, Euro, Yen) to suit exporter needs. Helps mitigate currency risk for international projects.
Eligibility: Available to export-oriented units, project exporters, MSMEs and large enterprises. Companies participating in multilaterally funded projects (World Bank, ADB) are eligible. Indian companies securing overseas or deemed export contracts can apply.
Types of Financing: Term Loans for long-term capital needs in Rupees or foreign currency. Export Project Cash Flow Deficit Finance (EPCDF) for temporary cash flow gaps. Pre-shipment and Post-shipment Credit for working capital needs. Non-Funded Facilities including guarantees and letters of credit.

- Security and Guarantees: Loans can be secured with assets, guarantees or other acceptable securities. Letter of Credit (L/C) confirmation available under Global Trade Finance Program with IFC.
- Competitive Terms: Quick and competitive financing to help exporters compete globally. Special emphasis on MSMEs and projects aligned with "Make in India" initiative.
- Additional Support: Advisory services to help companies participate in multilaterally funded projects. Support for grassroots and sustainable initiatives to strengthen export capabilities.
- Special Programs: Buyer's Credit under NEIA for financing overseas buyers of Indian goods/services. Emergency Credit Line Guarantee Scheme (ECLGS) for MSMEs with 100% guarantee coverage.
- Application Process: Digital and offline application options available. Comprehensive documentation required including project reports and financial statements.
- Processing Time: Varies based on project complexity and completeness of documentation. MSME loans under ECLGS may have faster processing times.

Benefits of Project Loans

Enhanced Global Competitiveness: Enables Indian companies to finance capital expenditures for modernization, expansion or technology upgrades. Access to competitive financing terms helps exporters offer attractive pricing to international clients.
Support for Diverse Project Needs: Covers setting up export-oriented units, executing turnkey projects, and participating in multilaterally funded projects. Financing available for engineering, procurement, construction (EPC), consultancy and technology transfer.
Flexible Financing Options: Available in Indian Rupees or foreign currencies (USD, Euro, Yen) to mitigate currency risk. Tailored solutions including term loans, pre-shipment/post-shipment credit, and export project cash flow deficit finance.

- Improved Cash Flow Management: Pre-shipment credit supports working capital needs during project execution. Post-shipment credit and buyer's credit provide liquidity by financing export bills.
- Access to Multilaterally Funded Opportunities: Facilitates participation in high-value projects funded by agencies like World Bank, ADB. Advisory services help navigate international competitive bidding.
- Support for MSMEs and Emerging Exporters: Special focus through concessional terms and programs like "Ubharte Sitare Programme". Emergency Credit Line Guarantee Scheme provides guaranteed loans to eligible MSMEs.
- Risk Mitigation: Non-funded facilities like guarantees and L/C confirmation reduce non-payment risks. Secured financing options provide confidence to both borrowers and lenders.
- Cost-Effective Financing: Competitive interest rates and quick disbursal reduce financial burden. Concessional financing available for priority sectors like "Make in India" initiatives.
- Capacity Building and Market Expansion: Financing for R&D, infrastructure and overseas investments helps build capabilities. Supports grassroots initiatives and sustainable finance programs.
- Strategic Economic Impact: Contributes to India's foreign exchange earnings and economic development. Aligns with national initiatives to boost manufacturing, exports and job creation.

How to Apply for Project Loans

1. Determine Eligibility
- Ensure your business aligns with Exim Bank's focus areas:
- Export-oriented units (manufacturing or services)
- Project exporters with overseas or deemed export contracts
- Companies participating in multilaterally funded projects
- MSMEs or firms under initiatives like "Make in India"
- Confirm your project qualifies for financing (capital expenditure, project exports, etc.)
2. Understand Loan Types and Requirements
- Identify the specific loan product needed:
- Term loans (Rupee or foreign currency) for capital expenditure
- Export Project Cash Flow Deficit Finance (EPCDF) for cash flow support
- Pre-shipment/post-shipment credit for working capital
- Non-funded facilities like guarantees or L/C confirmation
- Review security requirements and ensure you can provide acceptable collateral
3. Prepare Necessary Documentation
- Business Details: Company profile, registration documents, PAN/GST
- Financial Documents: Audited financial statements for last 2-3 years
- Project Details: Detailed project report (DPR) with scope, cost, timeline
- Export Contracts: Copies of export orders or contracts
- KYC Documents: Identity/address proofs of promoters/directors
- Security Documents: Details of proposed collateral or guarantees
- For multilateral projects, include bidding documents or contract award letters
4. Contact Exim Bank
- Connect with Exim Bank's Commercial Credit Group at ccg@eximbankindia.in
- Visit regional offices in Mumbai, New Delhi, Chennai, Bengaluru, Kolkata or Ahmedabad
- Seek advisory support for complex projects (multilaterally funded)
5. Submit Application
- Submit loan application form with required documents
- Include cover letter summarizing business, project details, loan amount and purpose
- Check if online submission is available via Exim Bank website
6. Application Review and Due Diligence
- Exim Bank evaluates project viability, creditworthiness and export potential
- Be prepared for site visits or additional document requests
- Respond promptly to any queries to avoid delays

Eligibility Criteria for Exim Bank Project Loans

Type of Entity
- Indian Companies: Registered businesses including private and public limited companies
- MSMEs: Micro, small and medium enterprises with export potential
- Partnerships and Proprietorships: Eligible for specific schemes
- Consortiums or Joint Ventures: For large-scale project exports
Business Activities
- Export-Oriented Units: Manufacturing or services businesses
- Project Exporters: Companies with overseas or deemed export contracts
- Multilaterally Funded Projects: Firms participating in World Bank, ADB projects
Project Purpose
- Capital Expenditure: Setting up/expanding export-oriented units
- Project Exports: Execution of overseas contracts with export benefits
- Import Financing: Import of capital goods for domestic projects with export potential
Financial and Creditworthiness
- Sound Financial Health: Demonstrated through audited financial statements
- Creditworthiness: Good credit history and ability to service the loan
- Security Requirements: Ability to provide acceptable collateral
Contract or Order Requirements
- Export Contracts: Evidence of secured contracts for project exports
- Multilateral Funding: Proof of bidding eligibility or contract award
Special Schemes and Programs
- MSMEs under ECLGS: Outstanding loans up to ₹50 crore and turnover up to ₹250 crore
- Buyer's Credit under NEIA: For financing overseas buyers
- Ubharte Sitare Programme: Emerging exporters with innovative products
Regulatory Compliance
- Must comply with Indian laws including company registration, tax compliance
- Necessary clearances for specific projects (environmental, statutory)
Experience and Track Record
- Operational History: Minimum number of years in operation (typically 2–3 years)
- Project Execution Capability: Proven experience in executing similar scale projects
Export Performance
- Past Export Turnover: Consistent export revenue over the last few years
- Product or Service Competitiveness: Globally competitive offerings

Documents Required for Exim Bank Project Loans

1. Business and Legal Documents
Company Profile: Detailed overview of business operations and achievements
Registration Documents: Certificate of Incorporation, MoA/AoA for companies
Tax Compliance: PAN, GST registration and recent returns
KYC Documents: Identity/address proofs of promoters/directors
Licenses and Approvals: Trade licenses, export/import licenses (IEC code)
2. Financial Documents
Audited Financial Statements: For last 2-3 years, certified by chartered accountant
Income Tax Returns: Business and promoter ITRs for last 2-3 years
Bank Statements: Last 6-12 months of business accounts
Projected Financials: Forecasted revenue, expenses and cash flows
Credit History: Credit rating report or details of existing loans
3. Project-Specific Documents
Detailed Project Report (DPR): With objectives, scope, timeline, cost estimates
Export Contracts: Copies of export orders or letters of intent
Technical Specifications: Equipment/technology details, supplier quotations
Regulatory Clearances: Environmental, land acquisition or statutory approvals
4. Security and Guarantee Documents
Collateral Details: List and valuation of assets offered as security
Guarantee Documents: Personal or corporate guarantees if applicable
Insurance Details: Policies covering project-related risks
5. Special Scheme Documents (if applicable)
For MSMEs under ECLGS: Proof of eligibility and Udyam Registration
For Buyer's Credit under NEIA: Overseas buyer details and creditworthiness
For Ubharte Sitare Programme: Evidence of innovative products/growth potential

Factors Considered for Exim Bank Project Loans

1. Project Viability and Feasibility
Technical Feasibility: Sound implementation plan and reliable technology
Financial Viability: Projected profitability and cash flow adequacy
Market Potential: Demand in target markets and competitive positioning
Economic Impact: Alignment with national priorities like job creation
2. Applicant's Financial Health
Creditworthiness: Strong credit history with no defaults
Debt Service Capacity: Ability to repay based on financial ratios
Revenue Stability: Consistent income streams, especially from exports
Net Worth and Profitability: Positive net worth and sustained profits
3. Export Orientation and Contract Strength
Export Contracts: Secured contracts with credible overseas buyers
Multilateral Funding: Eligibility for international competitive bidding
Track Record: History of successful export projects (preferred)
4. Security and Risk Mitigation
Collateral: Acceptable securities to secure the loan
Guarantees: Personal or corporate guarantees from promoters
Risk Assessment: Currency, political and buyer non-payment risks
Insurance: Coverage for project-related risks
5. Regulatory and Compliance Factors
Legal Compliance: Company registration, tax compliance
Project Approvals: Necessary clearances for sensitive projects
Foreign Trade Policy: Alignment with India's export policies
6. Loan Purpose and Alignment
Eligible Purposes: Capital expenditure, project exports, working capital
Export Promotion: Enhances India's export capabilities
Special Initiatives: "Make in India", MSME support, sustainable finance

Frequently Asked Questions (FAQs)

1. What are project loans offered by Exim Bank?

Project loans from Exim Bank are financial facilities designed to support Indian companies in export-oriented activities. They finance capital expenditure (e.g., equipment imports, modernization, expansion), project exports (e.g., turnkey projects, consultancy), and participation in multilaterally funded projects (e.g., World Bank, ADB-funded). Loans can be in Indian Rupees or foreign currencies and include term loans, pre-shipment/post-shipment credit, and non-funded facilities like guarantees.

2. Who is eligible to apply for project loans?

Eligible applicants include:
- Indian companies (public/private limited) and MSMEs involved in manufacturing or services
- Project exporters with secured overseas or deemed export contracts
- Firms participating in multilaterally funded projects under international competitive bidding
- Emerging exporters under programs like "Ubharte Sitare" or MSMEs under schemes like ECLGS
Applicants must demonstrate financial stability, project viability and compliance with regulatory requirements.

3. What types of projects are financed by Exim Bank?

Exim Bank finances:
- Capital Expenditure: Setting up/expanding export-oriented units, modernizing facilities
- Project Exports: Overseas or deemed export contracts including turnkey projects, construction
- Multilaterally Funded Projects: Contracts funded by agencies like World Bank or ADB
- Sustainable Initiatives: Projects supporting rural enterprises or sustainable development

4. What types of project loans are available?

Exim Bank offers:
- Term Loans: For long-term capital needs in Rupees or foreign currency
- Export Project Cash Flow Deficit Finance (EPCDF): For cash flow gaps
- Pre-Shipment/Post-Shipment Credit: For working capital or export bill financing
- Non-Funded Facilities: Guarantees or letter of credit (L/C) confirmation
- Buyer's Credit under NEIA: Credit to overseas buyers for Indian goods/services

5. What documents are required to apply for a project loan?

Commonly required documents include:
- Business Documents: Company profile, registration certificate, PAN, GST
- Financial Documents: Audited financial statements (2-3 years), ITRs, bank statements
- Project Documents: Detailed Project Report (DPR), export contracts
- Security Documents: Collateral details, guarantees
- Loan Application: Filled form, cover letter, board resolution
Contact Exim Bank for a specific checklist tailored to your project.

6. How can I apply for a project loan?

1. Confirm eligibility and align project with Exim Bank's objectives
2. Prepare required documents including DPR and financials
3. Contact Exim Bank's Commercial Credit Group or visit regional office
4. Submit loan application with documents
5. Cooperate during due diligence (site visits, clarifications)
6. Upon approval, sign loan agreement and fulfill disbursement conditions

7. What factors does Exim Bank consider when approving project loans?

Key factors include:
- Project Viability: Technical and financial feasibility, market potential
- Financial Health: Creditworthiness, revenue stability, repayment capacity
- Export Contracts: Secured contracts with credible buyers
- Security: Acceptable collateral or guarantees
- Compliance: Adherence to regulatory and export policy requirements
- Alignment: Support for national initiatives or special programs

8. Can MSMEs apply for project loans?

Yes, MSMEs are a priority for Exim Bank. They can access loans for:
- Export-oriented projects
- Capital expenditure
- Working capital needs
Special schemes like the Emergency Credit Line Guarantee Scheme (ECLGS) offer 100% guaranteed loans for eligible MSMEs. The "Ubharte Sitare Programme" also supports emerging MSMEs with high-growth potential.

9. Are foreign currency loans available?

Yes, Exim Bank offers loans in foreign currencies (e.g., USD, Euro, Yen) alongside Indian Rupee loans. This is particularly useful for:
- Project exports
- Imports of capital goods
Helps mitigate currency risk for international projects.

10. What is the role of Buyer's Credit under NEIA?

Buyer's Credit under the National Export Insurance Account (NEIA) allows Exim Bank to finance overseas buyers purchasing Indian goods/services, particularly for high-value project exports. Benefits include:
- Enhances competitiveness of Indian exporters
- Offers credit to overseas buyers
- Exim Bank assesses buyer's creditworthiness and project importance
Helps Indian companies secure large international contracts.

List of Exim Bank Project Loans

Term Loans (Rupee and Foreign Currency)
Export Project Cash Flow Deficit Finance (EPCDF)
Pre-Shipment Credit
Post-Shipment Credit
Equipment Finance Loans

Buyer's Credit under National Export Insurance Account (NEIA)
Non-Funded Facilities (Guarantees and Letter of Credit Confirmation)
Working Capital Term Loans under Emergency Credit Line Guarantee Scheme (ECLGS)

Project Vendor Finance
Supply Chain Finance for Project Exports
Bridge Loans for Project Mobilization
Corporate Loans for Export-Oriented Infrastructure Projects

Structured Finance for Large-Scale Project Exports
Loans for Research and Development (R&D) Supporting Export Projects
Refinance Facilities for Project Exports

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