Parameters

Product Features

Objective

• The scheme is introduced in alignment with the Credit Assistance for E-Commerce Exporters intervention under the Niryat Protsahan Sub-Scheme of the Export Promotion Mission.
• The objective of the scheme is to facilitate timely and adequate working capital support to MSMEs engaged in international value chains through e-commerce platforms, enabling them to procure and maintain inventory in anticipation of export demand and expand their presence in global markets.
• The scheme further seeks to offer credit facilities with flexible repayment terms aligned to the cash flow patterns of e-commerce exporters. This is expected to support business expansion, improve export competitiveness and facilitate

increased exports through e-commerce channels.

Eligible Borrowers

1. MSME engaged in direct e-commerce exports through postal or courier, provided they:
   • Hold a valid Importer Exporter Code (IEC) which is not listed in the Denied Entity List (DEL); and
   • Possess a valid MSME Udyam Registration Number.
   • Obtained a Unique Identification Number (UIN) is generated by submitting an online declaration of intent on the DGFT portal
2. MSMEs that are newly entering international value chains through e-commerce shall also be eligible, provided they have at least one year of regular domestic e-commerce business operations.
3. MSME shall be engaged in direct e-commerce exports through postal or courier channels
4. Credit facilities availed if any, by the applicant shall not be classified as non-performing as on the date of application.
5. Also, any account of the borrower shall not have been classified as a Special Mention Account–2       (SMA-2)          or Non- Performing Asset (NPA) with any lending institution at any time during the two years immediately preceding the date of application for the credit facility.
6.  The name of the borrowing entity and/or its directors/ partners/ proprietors’ promoters shall not be appearing in the lending institution’s defaulter list or in any of the Negative lists

Nature of Facility

Fund-based Working Capital Facility in the form of Cash Credit or Overdraft.

Loan Amount

  Maximum: Rs.50.00 lakh per borrower.

Margin

25% on Stock & 30% on Book Debts up to 90 days (Book Debts above 90 days up to 180 days can be considered by respective sanctioning authority on case to case basis

Assessment of Limit

The eligible credit limit shall be the lower of:

• The working capital limit assessed in accordance with the Bank's MSME/Credit Policy; or
• 20% of the average e-commerce export sales during the

preceding two years.

Security

• Hypothecation of assets created out of loan proceeds i.e. stock & charge over receivables
• Credit facilities sanctioned under this product shall be mandatorily covered under the credit guarantee scheme offered by NCGTC under the Credit Assistance for E-Commerce Exporters intervention of Niryat Protsahan component of the Export Promotion Mission. The Guarantee coverage available under the scheme is up to 90% of the sanctioned limit.

Loan Tenure

The facility shall be valid for a period of 12 months and may be renewed thereafter subject to satisfactory conduct of the account and compliance with the Bank's extant guidelines.

Annual Guarantee Fee & Renewal of Guarantee

• The annual guarantee fee @ 0.50% p.a. shall be charged on the guaranteed amount for the first year and on every renewal thereafter. The guarantee fee shall be borne by the borrower
• At the time of renewal, Exim Bank shall verify compliance with the export obligations required to be fulfilled by the beneficiaries during the preceding year for continuation of the guarantee support.
• For exporters availing the Direct E-Commerce Credit Facility and undertaking exporters through courier/ postal route, the export obligation shall be at least 50% of the arithmetic mean of the export turnover achieved through postal and courier route during the preceding two years. In any case, the export obligation shall not be lower than the amount of the credit facility availed.

Rate of Interest

Interest shall be charged as per the rate applicable for General MSME product as amended from time to time.

Interest Subvention

• Credit facilities sanctioned under the scheme shall be eligible for Interest Subvention support in accordance with the rates and operational guidelines notified by the Government of India/implementing agency from time to time.
• At present as per notification, the Bank shall provide an upfront interest subvention of 2.75% per annum on credit facilities sanctioned under the scheme, subject to other the terms and conditions of the intervention.
• The maximum interest subvention admissible under the scheme shall be capped at ₹15 lakhs per beneficiary MSME in a financial year, or such limit as may be prescribed by the Government of India/implementing agency from time to time.
• Grant of interest subvention shall be subject to continued compliance with the eligibility criteria, operational guidelines, and any amendments issued under the Credit Assistance for E-

Commerce Exporters intervention from time to time.

Processing       &      other

charges

All charges as per the Service Charges Circular issued by the Bank

from time to time.

Takeover of Accounts

Not permitted

Other Terms and Conditions

• All other guidelines as per credit policy to be complied along with applicable benchmark norms. Any deviation in benchmark norms to be dealt with as per delegated power.
• All securities shall be adequately insured with Bank clause – Premium to be borne by the borrower
• Stock and Book Debts statement to submitted on quarterly basis and DP to be arrived accordingly.
• The Branch shall conduct thorough due diligence, including verification of market reputation and past credit behavior of the prospective borrower.
• Revised interest subvention rates, guarantee coverage as notified/advised from time to time, shall be applicable only to credit facility sanctioned and disbursed on or after the date of such notification/advice.
• The responsibility for ensuring that the aggregate subvention and credit facility availed remains within the prescribed annual ceiling shall rest with the beneficiary. Any excess claims above the admissible limit shall be liable to recovery and commensurate action.
• Beneficiaries graduating out of their existing MSME category during the financial year, due to an upward change in investment or turnover, shall continue to remain eligible for support for a period of three years from the date of such re-classification, in accordance with Ministry of MSME Notification S.O. 4926(E) dated 18.10.2022, and subject to fulfilment of all other prescribed conditions.
• Proper due diligence of the borrower to be undertaken & all the guidelines in this regard, including KYC norms, be meticulously followed.
• Given Support shall not be admissible in respect of deemed exports, as defined under Chapter 7 of the Foreign Trade Policy

or for exports to Special Economic Zones (SEZs).

• Export-Import Bank of India (Exim Bank), along with National Credit Guarantee Trustee Company (NCGTC), will be the implementing agency on behalf of the Department of Commerce.
• The entities will be eligible to request for a claim for guarantee, which will be the applicable percentage of dues (including principal and interest, but excluding penal interest/ charges), after 90 days but no later than 360 days of the borrower account turning NPA.
• Any amendments, operational instructions, or clarifications relating to the obligations of eligible entities shall be advised suitably from time to time through notification/circular/FAQs.
• The notified subvention rate and guarantee coverage shall be reviewed on a bi annual basis and revised, where necessary, preferably in the last week of March and September of each financial year with effect from 1st April and 1st October.
• An annual ceiling shall apply to the total subvention amount, and available credit facility that a beneficiary MSME (involved in international value chains through e commerce) may receive in a given financial year.
• Exclusion List for Credit Assistance for E-Commerce Exporters

The following categories shall not be eligible for assistance

under the intervention:

• Goods and services that are prohibited for exports under Schedule-II (Export Policy) of ITC(HS), 2022
• Transactions involving countries under sanctions such as those under the FATF Blacklist and United Nation sanctions, read with Para 2.16 to para 2.20 of the Foreign Trade Policy 2023.
• Production or trade in any product or activity deemed illegal under host country laws or regulations or international conventions and agreements.

Trade in wildlife or wildlife products regulated under CITES, Production or trade in radioactive materials, Production or trade in pesticides/herbicides subject to international phase outs or bans, Production or trade in ozone depleting substances subject to international phase out., or trade Production in wood or other forestry products, Production or trade in weapons and munitions, or other Restricted Export Categories shall be permitted subject to the requisite Conditions as defined under the Export Policy, ITC(HS) 2022 and other related Acts and Rules