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International Finance Schemes

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					               International Finance Schemes by SIDBI
The International Finance schemes main objective is to enable small-scale industries to raise finance
at internationally competitive rates to fulfil their export commitments.


The financial assistance is being offered in USD and Euro currencies. Assistance in Rupees is also
considered, independent of foreign currency limits.

SIDBI has a license to deal in foreign exchange as a "restricted" Authorised Dealer (i.e. SIDBI confines
its foreign exchange activities only to its own exposures and to exposures for its customers.

The Mumbai Head Office (MHO) of SIDBI operates as a Category 'A' branch that maintains foreign
currency positions, nostro account with foreign correspondent banks and provides cover to other
branches (Category 'B' branches) that carry out forex business.

SIDBI has a Dealing Room at Mumbai that acts as a central service provider to all branches.

The details of some of the schemes are placed below:

                    Post-Shipment Credit on Foreign Currency(EBF)/Rupee (PSCR)

Purpose       To provide post-shipment credit in foreign currency at internationally
              competitive rates of interest by discounting of usance export bills /
              purchase of sight/demand export bills and negotiation of bills under LCs.
Eligibile     All SSI units and Export / Trading houses sourcing their requirements from
Borrowers     SSIs with

                  a. profit making units with proven track record in exports for last three
                     years and sound financial position

                   b. requirement of export finance assistance of at least Rs.100 lakh
Norms         Need based limit, depending on the normal trade terms and credit period
              given to overseas buyers by exporters not exceeding 180 days. Assistance
              in rupees is also considered independent of FC limits.

              Rate of interest-

              For EBF - Not exceeding 0.75% over 6 Month LIBOR.

              For PSCR - As per RBI guidelines and the score chart introduced by SIDBI.


                    Pre-Shipment Credit in Foreign Currency (PCFC)/ Rupee (PCR)

Purpose       To enable small scale industries to raise finance at internationally
              competitive rates as per Reserve Bank of India guidelines to fulfil their
              export commitments.
Eligibile     Industrial concerns in the small scale sector and Government recognised
Borrowers     Export / Trading Houses sourcing their requirement for export from SSI sector
              with

                  a. profit making units with proven track record in exports for last three
                     years and sound financial position

                   b. requirement of export finance assistance of at least Rs.100 lakh
Norms         Pre-shipment Credit in Foreign Currency (PCFC) is being extended in USD &
              EURO Currencies. Assistance in Rupees is also considered independent of
              FC limits.

              Quantum - need based linked to working capital gap.
               Period of Credit - linked to production cycle (Maximum - 180 days)

               Margin - minimum 10% and maximum 25%

               Repayment - by discounting / negotiation of Export bills within a maximum
               period of 180 days

               Rate of interest -

               For PCFC - Not exceeding 0.75% over 6 Month LIBOR.

               For PCR - As per RBI guidelines and the score chart introduced by SIDBI.

                              Foreign Currency Term Loan Scheme (FCTL)

FCTL will be extended in USD & Euro currencies.

Rate of interest -   USD : 3% over 6 Month LIBOR
                     EURO : 2.5% over 6 Month LIBOR

For acquisition of fixed Assets

Purpose        For setting up new projects as well as for expansion, diversification,
               technology upgradation and modernisation of existing units with good
               track record covering both indigenous and imported. The units should
               preferably be export-oriented.
Eligible       Industrial concerns in the small scale sector.
Borrowers
Norms          Repayment - maximum 5 years with a moratorium of 1 year, linked to the
               cash flow of the unit.

For Working capital purposes

Purpose        For meeting working capital requirements, both indigenous and imported.
Eligible       SSI units and Export / Trading Houses sourcing their requirements for export
Borrowers      from SSI sector and having consistent export performance.
Norms          Repayment - maximum 5 years.

For further details interested parties may contact:

SIDBI
International Finance Department
Nariman Bhavan, 227, Vinay K.Shah Marg,
Nariman Point, Post Bag No.9977,
Mumbai - 400 021
Phone: 22851274-77/22027716/22850795/22850792
Fax: 022-22851282

				
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