Loans are approved very fast from Export and Import banks responsible for the promotion of products and services of their
national engaging in
international trade .
The offer soft term loans to financing products and services to be exported or imported whose lending rate of interest will be quit low comparing to the conventional lenders such as banks and other financiers engaging in international trade In most cases, the cost of offering consultancy services by Exim bank to their nationals is subsidized.
The Exim bank is set up by the government to encourage their nationals in international trade activities. The provide such services such as market research for exportable products, international market prices, pre-shipmen financing, trade fair promotion overseas and many more. They also include insurance package which include,
commercial and political risk insurance and re-insurance services.
They provide re-insurance insurance services which the commercial insurance agents cannot undertake. They also provide guarantee on loans offered by the commercial lenders to the exporter or importer.
The Exim bank may request for the export order sent by the buyer overseas before issuing out loans to the exporter. The lending rate vary from one Exim bank to another operating in different county and base on the economy of their nation and their national rules and regulations guiding international trade operation.
Comsumable product may be sort term ranging from three months to six months. In the case of capital goods(such as manufacturing equipment and other income producing propery) may take six months to one year or more depending on the type and value of the export order. So the Exim bank engaging in short and longer term lending activities in international operation.
Exim banks has list of countries in order to determine the type finacial assistance, terms, interest rates ect that is suituable. As the same type of services cannot be given to all counrties in the list.