ECGC launches 'Nirvik' to enhance credit availability for exporters
17 September 2019
Export Credit Guarantee Corporation (ECGC) has introduced a new Export Credit Insurance Scheme (ECIS), called NIRVIK, to enhance loan availability and ease the lending process, commerce and industry minister told a press conference in New Delhi on Monday.
The details of the scheme were shared by the Commerce & Industry and Railways Minister, Piyush Goyal and Minister of State for Commerce & Industry,Hardeep Singh Puri, in a press conference in New Delhi today.
The scheme, part of the measures announced by finance minister Nirmala Sitharaman to boost exports, will have a higher premium rate for borrowers in the gems, jewellery and diamond (GJD) sector with limit of more than Rs80 crore, compared to non-GJD sector borrowers, Goyal and his deputy Hardeep Singh Puri, said at a press conference.
The ECGC cover provides additional comfort to banks as the credit rating of the borrower is enhanced to AA rated account.
Enhanced cover will ensure that foreign and rupee export credit interest rates will be below 4 per cent and 8 per c3ent, respectively, for exporters.
Under ECIS, insurance cover percentage has also been enhanced to 90 per cent from the present average of 60 per cent for both principal and interest.