ECGC Introduces NIRVIK Scheme to Enhance Loan Availability to Exporters
- The ECGC (Export Credit Gurantee Corporation of India) has launched a new Export Credit Insurance Scheme (ECIS) named NIRVIK (Niryat Rin Vikas Yojna) to enhance loan availability to exporters and also help ease the lending process.
- The new ECIS scheme will be in force for a period of 5 years and the Central government has announced to provide support of Rs 8,500 crore to ECGC for the same.
- ECGC currently provides credit guarantee of up to 60% loss in export of goods and services.
- Under NIRVIK scheme, this cover percentage has been enhanced to 90% of both the principal and interest. This means that if there is any loss, then in that case ECGC will refund 90% to the banks including principal and interest.
- Banks will get up to 50% within 30 days of complain lodge.
- This new scheme will cover both pre and post shipment credit.
Points to remember:
- NIRVIK (Niryat Rin Vikas Yojna) Scheme has been launched by?
- Coverage percentage of NIRVIK? – 90%
- NIRVIK scheme will remain in force for how many years?- 5 years