You are here: Home » News-CM » Economy » News
Business Standard

ECGC introduces Nirvik to enhance loan availability for exporters

Topics
Business Finance

Capital Market 

Nirvik will ease lending process: Piyush Goyal

Ministry of Commerce & Industry through 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.

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 on 16 September 2019.

The scheme was announced by the Finance Minister Nirmala Sitharaman to boost exports on 14 September 2019 in New Delhi.

Piyush Goyal said that the gems, jewellery and diamond (GJD) sector borrowers with limit of more than Rs 80 crore will have a higher premium rate as compared to non-GJD sector borrowers of this category due to the higher loss ratio. 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%and 8% respectively for exporters.

Under ECIS, insurance cover percentage has also been enhanced to 90% from the present average of 60% for both Principal and Interest.

Powered by Capital Market - Live News

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Tue, September 17 2019. 08:02 IST
RECOMMENDED FOR YOU
RECOMMENDED FOR YOU