Posted on : 07 Feb 2020Views: 763
- Export Credit Guarantee Corporation of India (ECGC) has introduced ‘NIRVIK’ scheme to ease the lending process and enhance loan availability for exporters.
- Insurance cover guaranteed will cover up to 90 percent of the principal and interest.
- The increased cover will ensure that foreign and rupee export credit interest rates are below 4 percent and 8 percent respectively for the exporters.
- The insurance cover will include both pre and post-shipment credit.
- The gems, jeweler and diamond (GJD) sector borrowers with limit of over Rs 80 crore will have a higher premium rate in comparison to the non-GJD sector borrowers of this category due to the higher loss ratio.
- For accounts with limits below Rs 80 crore, the premium rates will be moderated to 0.60 per annum and for those exceeding Rs 80 crore, the rates will be 0.72 per annum for the same enhanced cover.
- It mandates inspection of bank documents and records by ECGC officials for losses exceeding Rs. 10 crore as against the present Rs 1 crore.
- The banks shall pay a premium to ECGC monthly on the principal and interest as the cover is offered for both outstanding.
- The Export Credit Guarantee Corporation of India (ECGC) is a fully government-owned company that was established in 1957 to promote exports by providing credit insurance services.
- The ECGC provides Export Credit Insurance to Banks (ECIB) to protect the banks from losses on account of export credit at the Pre and Post-Shipment stage given to exporters due to the risks of insolvency or protracted default of the exporter borrower
Article Related Questions
Consider the following statements about Nirvik Scheme
1.‘NIRVIK’ scheme is launched to ease the lending process and enhance loan availability for exporters.
2.It is implemented by Export Credit Guarantee Corporation of India (ECGC)
Which of the following statement(s) given above is/are correct?
3.Both 1 and 2
4.Neither 1 nor 2
Right Ans : Both 1 and 2