Nirvik Scheme

News:Ministry of Commerce & Industry through Export Credit Guarantee Corporation(ECGC) has introduced a new Export Credit Insurance Scheme (ECIS) called NIRVIK.

Facts:

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.

Additional information:

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.