Bank Master Policy (BMP)

How it works?

Bank Master Policy (BMP) protects the insured Bank against the risk of non-payment of international receivables from importers, which are financed by the Bank for their exporters. BMP creates additional security for the Bank that is liquid in nature.

The main aim of this offering is to provide the Banks coverage against repayment loss, encouraging Banks to take more risk and resultantly, closing the funding gaps in the exports market.

Insurance Cover for credit exposure with Exporters:

  • Bank enters into a facility agreement with an exporter which includes international receivables as security.
  • Bank intends to protect its recoveries from exporters, and would like to cover the risk of non-payment of their receivables.
  • Commercial Bank submits proposal for EXIM’s BMP providing details of buyers and respective receivables, payment terms of export receivables, terms of working capital facility to the exporters etc.
  • After positively assessing the creditworthiness of exporter’s buyers, EXIM Bank prepares a quotation confirming the insurance credit limits of each buyer with respect to the exporter, premium percentage etc. for Banks acceptance to the offer.
  • Upon Banks acceptance, EXIM Bank will issue BMP along with confirmation of cover detailing the buyer’s credit limit, risk disclosures and accepted payment terms for the buyer.

Commercial Banks and related Financial Institutions.

For Banks:

  • Protection of Balance sheet and risk mitigation. Additional risk appetite for business growth.

For Exporters:

  • Collateral free financing for exporters. Due to less exposure, Banks and related FI will be willing to take on higher level of risk resulting in availability of additional funding in the market.
  • You submit a credit proposal.
  • We prepare a quotation.
  • You submit individual buyers to be included in the cover.
  • We run a credit check on your buyers.
  • You are now covered.
  • Declaration.
  • Claim Payments.
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