News:Ministry of Commerce & Industry through Export Credit Guarantee Corporation(ECGC) has introduced a new Export Credit Insurance Scheme (ECIS) called NIRVIK.
About the scheme:
- The scheme aims to ease the lending process and enhance loan availability for exporters.
- 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.
- Currently,the Export Credit Guarantee Corporation of India(ECGC) provides credit guarantee of up to 60 percent loss.
Benefits of the scheme:
- This 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.
Export Credit Guarantee Corporation(ECGC):
- ECGC is a premier export credit agency of the Government of India to provide Export Credit Insurance Services to facilitate exports from the country.It was founded in 1957.It is headquartered at Mumbai.
- The ECGC offers credit insurance schemes to exporters to protect them against losses due to non-payment of export dues by overseas buyers due to political or commercial risks.