The NID Bank provides funding to target sub-borrowers acting as financial intermediaries. Under this modality, the Bank lends funds from its own sources as also on- lends funds obtained from multi-lateral institutions to eligible financial intermediaries, like local Banks or other financial institutions. The Bank provides smaller loans at its own credit risk, to sub-borrowers.
FILs may target certain types of sub-borrower beneficiaries like micro, small- and medium-sized enterprises, women entrepreneurs, and low-income groups.
It is a short-term loan, generally up to 180 days, given to the exporters who have secured confirmed export orders. The loan is sanctioned for making necessary preparations for shipment of goods. This financed quantum usually covers cost of packing, transportation from the go-down to the port for shipment, ware housing, etc. It is also known as pre-shipment credit. They may be extended against confirmed orders, or letter of credit issuance. Usually, the bills accepted are drawn as “payable to the Bank” and invoices are marked with clear instructions that make them payable to the Bank. packing credit may be allowed up to 90% of invoice value against Bill of lading receipt/Airway bill receipt/Truck receipt and rail receipt.
