ECGC introduces new scheme providing enhanced export credit risk insurance cover up to 90% for small exporters

Source: The post is based on the article “ECGC introduces new scheme providing enhanced export credit risk insurance cover up to 90% for small exporters” published in PIB on 26th July 2022.

What is the News?

Export Credit Guarantee Corporation(ECGC) has introduced a new scheme to provide enhanced export credit risk insurance cover to the extent of 90% to support small exporters.

About the Scheme to provide enhanced export credit risk insurance cover

Launched by: ECGC under the Export Credit Insurance for Banks Whole Turnover Packaging Credit and Post Shipment(ECIB- WTPC & PS).

Objective: To provide small exporters with enhanced export credit risk insurance coverage of up to 90%.

Eligibility: The enhanced insurance cover will be available for manufacturers and exporters availing fund-based export credit working capital with a limit of up to Rs 20 crore (Packaging Credit and Post Shipment limit per exporter/exporter-group), excluding the gems, jewellery and diamond sector and merchant exporters.

What is the significance of the scheme?

The scheme is expected to benefit a number of small-scale exporters availing of export credit with banks which hold the ECGC WT-ECIB covers. 

This will also enable the small exporters to explore new markets/new buyers and diversify their existing product portfolio competitively.