What loan programs support exporters and international business?

Exporters and international businesses are presented in India with a variety of loan options. Pre-shipment and post-shipment finance, export credit and working capital loans, are just a few that suit exporters based on their unique business needs. Programs offered through government-backed schemes by export promotion councils, or the Export Credit Guarantee Corporation (ECGC), and along with other schemes that support exporters at competitive rates of interest (with extended payment terms), provide working capital between production and receipt of payment for goods and services, materials and raw material funding, or expansion to new markets.

Depending on the financial institution, specific export finance products, that can be made available, include packing credit, buyer's credit, and export bill discounting. Once available, you may apply by submitting appropriate documentation such as export orders, shipping bills, to name a couple, and past export performance. For international business expansion, term loans and trade finance solutions are available to support the office expansion, joint venture or acquisitions, etc.

Always check for eligibility criteria as different schemes may have limits on either sectors or export volumes. Working with a financial advisor or export promotion agency can help find the best loan program for your business needs and aspirations.

Government programs such as a more recent Export Promotion Mission have begun giving exporters easier access to credit which includes collateral free loans and interest equalisation initiatives for MSME's (micro small and medium enterprises) and new exporters. These schemes allow for online evaluating and monitoring while exporters can receive a unique ID for fund progress. Additionally factoring programs are also being strengthened as a means of providing an alternative to banks which reduces dependence on those for working capital and export transactions.