The Export Credit Guarantee Corporation of India (ECGC) has rolled out the Export Credit Insurance Scheme (ECIS), termed as NIRVIK, with an aim to augment loan accessibility and simplify the lending procedure. This scheme is an insurance cover guarantee that promises to cover up to 90% of the principal amount, along with the interest. It includes both pre and post-shipment credit. Currently, ECGC provides a credit guarantee covering up to 60% loss.
The NIRVIK Scheme
This upgraded cover seeks to ensure that Foreign and Rupee export credit interest rates will be maintained below 4% and 8% respectively for exporters. The NIRVIK Scheme, a commendable step by ECGC, can potentially boost export businesses as it offers a high insurance cover, minimizing the demand for loans and simplifying the lending process.
ECGC and its Objectives
The Export Credit Guarantee Corporation of India, otherwise known as ECGC Ltd, is an organisation wholly owned by the Ministry of Commerce and Industry. The Government of India initially established the Export Risks Insurance Corporation in the year 1957.
Post the introduction of insurance covers to banks during 1962-64, the name was altered to Export Credit & Guarantee Corporation Ltd in 1964. Eventually, the name was modified to ECGC Ltd in August 2014. The primary objective of ECGC is to promote exports from India by extending credit risk insurances and other related services for exports.
| Name | Establishment Year | Ownership | Main Objective |
|---|---|---|---|
| Export Credit Guarantee Corporation of India (ECGC) | 1957 | Ministry of Commerce and Industry | Providing export credit risk insurances and related services for exports |
The Evolution of ECGC
The journey of ECGC is a notable one, from being the Export Risks Insurance Corporation in 1957 to becoming a key player in promoting exports from the country. The evolution and rebranding, spanning over half a century, clearly reflect the entity’s responsiveness to changing economic conditions and its dedication towards facilitating the growth of India’s exports.
Today, ECGC Ltd. stands as a significant pillar of the Indian export framework, providing both pre and post-shipment credit to exporters, thereby enabling them to compete at a global level. The NIRVIK scheme adds another feather to ECGC’s cap, aiming to boost the export business by enhancing loan availability and streamlining the lending process.
Source: PIB