Finance & Services : Lines of Credit

Exim Bank extends Lines of Credit (LOCs) to overseas financial institutions, regional development banks, sovereign governments and other entities overseas, to enable buyers in those countries, to import goods and services from India on deferred credit terms. The Indian exporters can obtain payment of eligible value from Exim Bank, without recourse to them, against negotiation of shipping documents. LOC is a financing mechanism that provides a safe mode of non-recourse financing option to Indian exporters, especially to SMEs, and serves as an effective market entry tool.

Procedural flow chart


  1. Exim Bank signs agreement with Borrower and announces when effective.
  2. Exporter checks procedures and Service fee with Exim Bank and negotiates contract withImporter.
  3. Importer consults borrower and signs contract with exporter.
  4. Borrower approves contract.
  5. Exim Bank approves contract and advises borrower and also exporter and commercial bank.
  6. Exporter ships goods.
  7. Commercial bank negotiates shipping documents and pays exporter.
  8. Exim Bankreimburses Commercial bank on receipt of claim by debit to borrower.
  9. Borrower repays Exim Bank on due date.

Eligible Goods

Capital goods, plant and machinery, industrial manufactures, consumer durables and any other items eligible for being exported under the ‘Exim Policy’ of the Government of India.


  • Exporters are advised to check with Exim Bank before finalizing the contracts with the buyers, details of service fee and other charges, if any, payable by the exporters on the contracts to be covered under the relative LOC.
  • For terms and particulars of specific LOCs, please refer to relevant brochures available with Exim Bank’s offices in India.

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