Loans for Export-Import, ECB
Foreign Currency Loans
|Who can apply for ECB, Foreign Currency Loans ?|
|Exporters of Goods & Services|
|Importer of Goods & Services|
|Exporter, Importer of Technology, knowhow, software|
|E- Commerce ventures|
|Joint Ventures, subsidiaries in India of Foreign Companies|
|Overseas Joint Ventures, Subsidiaries of Domestic Companies|
|Offshore companies of Indian Nationals|
|Export, Import of Projects|
We assist in providing Fund & Non-Fund based facilities to exporters, importers . We also facilitate sanction of FCNR-B loans in designated foreign currency subject to availability of the currency in banks
Country Risk Management is a very vital component of International trade. To assess country risk, Click
Types of International Loans
↬ Non-Fund Based
|Fund Based Overseas Loans|
|➚||Overseas Rupee Bonds|
Pre-shipment Packing Credit (Rupee / Foreign Currency)
for procurement, manufacturing, processing, packing, shipping of goods for export.
|↱||Post-Shipment Finance - FBP, Discounting of
Bills under L/C
The export bills (both Sight and Usance)
purchased/ discounted subject to compliance with the norms of the Bank/ RBI.
|↱||Rupee / Foreign Currency Suppliers Credit
When project export is on deferred credit terms,financial assistance is given to exporters in Indian Rupees or Foreign Currency.
Granting credits to foreign buyers under Buyer Credit Scheme of EXIM Bank.
|↱||Loan Syndication for Corporates|
|↱||Credit Linked Notes for Corporates|
Out of the sanctioned domestic loans, a part to be converted to Foreign Currency Denominated loans ( FCNR-B Loans ). Foreign currency loans outside India are as per ECB Guidelines.
|↱||Raising of Funds through Bilateral loans, club deals|
Arranging funds from International Markets by way of Bonds, FRNs, FCCBs
Issue of Foreign Currency Convertible Bonds & Ordinary shares through Depository Receipt Mechanism Scheme, 1993 to be subscribed by a Non-Resident in foreign currency and convertible to ordinary shares of the issuing company in any manner either in full or in part on the basis of any equity related warrants attached to Debt instruments. FCCB issuance has to comply to the guidelines of FEMA notification number 120/RB-2004 Dated 07/07/2004 as amended from time to time.
|↱||Arranging loans from Export Credit Agencies of other countries|
|↱||Structured financing for procuring specific assets such as rigs, ships, aircrafts etc.|
|↱||Financing and structuring cross border acquisition debt|
|↱||Whole range of transactional banking services to Indian corporates for their offices, Joint Ventures, Subsidiaries abroad|
|↱||Foreign Exchange/ Derivative products.|
Arranging / underwriting/ participating in
|Memorandum of Instructions on Projects & Services Export (PEM) issued by RBI|
Directions in PEM are issued under Section 10(4), 11(1) of FEMA. Accordingly RBI has laid down Authority structure for clearance of project export proposals based on value of contract --
a) Upto US$ 100 million - By Authorized Dealer (AD) or Bank
b) Above US$ 100 million - By Working Group
|ECB through Syndicated Loans|
To discuss the terms and conditions of the ECB and finalize the same with a Bank or Banks
|↺||To give the mandate to us to arrange the ECB.|
|↺||We will arrange to end to end solutions as required for syndication through Bank|
|↺||To obtain required approvals from RBI/ Govt. of India.|
|↺||To oversee Execution of Loan Agreement and creation of charge on the securities, if applicable.|
|↺||If applicable, to obtain exemption from withholding tax under Section 10(15)(iv)|
|Non-Fund Based Overseas Loans|
To issue DP, Usance Letters of Credit (LC) on behalf of Indian importers
Opening of L/C and standby L/C, Negotiation & Discounting of L/Cs, Usance bills on Indian Companies, negotiation & discounting of L/Cs, advising ,confirmation of L/Cs.
|➨||Bid Bond Guarantee ( For Project Export Contracts)|
|➨||Advance Payment Guarantee ( For Project Export Contracts)|
|➨||Performance Guarantee ( For Project Export Contracts)|
|➨||Down Payment Guarantee ( For Project Export Contracts)|
|➨||Retention Money Guarantee ( For Project Export Contracts)|
|➨||Maintenance Guarantee ( For Project Export Contracts)|
|➨||Overseas Borrowing Guarantee ( For Project Export Contracts)|
While negotiating export bills, following documents are normally insisted by the negotiating bank--- invoice copy, Bill of Lading, shipping bill, Analysis Report, certificate of origin, Exchange Control copy original normally known as GR copy with Bank Name mentioned, Vessel details, Date of Shipment with AD Code.
|Latest in ECB|
★ECB proceeds can be parked as FDs for 6 months : According to the earlier norms, money raised abroad through ECB meant for rupee expenditure in India had to be brought immediately for credit to the rupee accounts of such borrowers . With a view to providing greater flexibility to the ECB borrowers in structuring draw-down of ECB proceeds and utilizaation of the same for permitted end uses, it has been decided to permit banks to allow eligible ECB borrowers to park ECB proceeds in banks in India for a maximum period of six months pending utilization for permitted end uses. However, such term deposits should be exclusively in the name of the borrower, it can be liquidated as and when required and no charge in any form should be created these deposits. The amended policy comes into force immediately with effect from 21/11/2014.