Exim Bank ready with diagnostic tools

IN CONVERSATION

about the initiative.

What is the thought process behind this new initiative?

The basic objective of the assessment tool is to identify those SMEs in India which may have the potential to do well, but based solely on financial parameters, may not be bankable.

Once, the gaps are identified, Exim Bank will handhold these companies in a variety of ways, including credit support, to bridge the gap. We expect the programme to rollout later this year.

It is for the first time that the Exim Bank and International Trade Centre are working together to make diagnostic tools for SMEs.

Would the programme target specific sectors or regions?

The focus will be on giving assistance, including loans, to SMEs involved in manufacturing activities. Handicrafts units with products appealing to the overseas markets will also be eligible for support.

What will be the selection criterion for the scheme?

Besides the usual investment norms for categorising the unit as an SME, the enterprise will have to demonstrate export potential. Enterprises promoted by women entrepreneurs or generating substantial employment for women will get preference under the scheme.

While financial assistance, export credit or term loans, are obvious forms of assistance, we can also assist SMEs in identifying markets and help companies adhere to global certification standards.

The bank can leverage its network of overseas offices to help SMEs, which are a part of programme, in giving marketing assistance.