Scheme name: NIRVIK
Full form of Nirvik: Niryat Rin Vikas Yojana
Hindi meaning of Nirvik: Unafraid and Unbowed
Objective of Nirvik: To enhance loan availability and ease the lending process
Launch: Union Budget 2020-21
Another name: Export Credit Insurance Scheme (ECIS)
Under Ministry: Commerce and Industry Ministry
Department: Export Credit Guarantee Corporation of India (ECGC)
Key features of NIRVIK scheme
- Provide high insurance cover for exporters and reduce premium for small exporters
- Insurance guarantee could cover up to 90% of the principal and interest
- The cover will include both pre and post-shipment credit
- Achieve higher export credit disbursement
- Provide high insurance cover
- Reduces premium for small exporters of certain key sectors
- Simplify procedures for claim and settlement
Existing features of Nirvik scheme
The NIRVIK scheme, first announced in September 2019
Under current scheme, Gems, jewellery and diamond (GJD) sector borrowers with limit of more than Rs. 80 crore will have a higher premium rate under the NIRVIK Scheme as compared to non-GJD sector borrowers of this category due to the higher loss ratio.
Export Credit Guarantee Corporation (ECGS) cover
Present feature: Currently provides credit guarantee of up to 60 percent loss
New features of ECGS cover under Nirvik scheme
- Enhance credit rating of the borrower to AA rated account
- Enhanced rating will make Foreign currency export credit interest rate to less than 4%
- Will also make Rupee export credit interest rate to be less than 8%
About Export Credit Guarantee Corporation of India
ECGC Ltd is wholly owned by the Ministry of Commerce and Industry.
Objective: To promote exports from the country by providing credit risk insurance and related services for exports
History of ECGS
- Government of India had set up Export Risks Insurance Corporation in 1957.
- Its name was changed to Export Credit & Guarantee Corporation Ltdin 1964, after the introduction of insurance covers to banks during the period 1962-64
- It was changed to ECGC Ltd in August 2014.
See more:
Foreign current and Rupee exports credit
End note
In this article, we have explained you in detailed about Nirvik scheme, launched in Budget 2020-21. If you have any question or comment regarding this article or scheme, please use the discussion thread below, or mail to us at info@xamnation.com
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