News:The Finance minister has announced the NIRVIK (Niryat Rin Vikas Yojana) scheme in the Budget 2020.
About NIRVIK Scheme:
- Aim:To provide a) enhanced insurance cover b) reduced premium for small exporters and c) Simplified procedure for claim settlements.
- Ministry:The scheme is being prepared by the Ministry of Commerce and Industry.
Features of the scheme:
- Under the scheme,the insurance cover guaranteed will cover up to 90% of the principal and interest.The insurance cover will include both pre and post-shipment credit.
- At present,the Export Credit Guarantee Corporation(ECGC) provides a credit guarantee of up to 60% loss.
Significance of the scheme:
- The scheme will help make Indian exports competitive and make ECGC procedures exporter friendly, benefiting MSME exporters.
- The insurance cover is also expected to bring down the cost of credit due to capital relief, less provision requirement and liquidity due to quick settlement of claims.