What is NIRVIK scheme?

NIRVIK scheme: Export Credit Guarantee Corporation of India (ECGC) has introduced ‘NIRVIK’ scheme to ease the lending process and enhance loan availability for exporters. The details of the scheme were shared by Union Minister of Commerce and Industry and Railways, Piyush Goyal on September 16, 2019 during a press conference. The scheme was announced by the Finance Minister Nirmala Sitharaman on September 14 as a part of measures to boost exports.

Under the new ‘NIRVIK’ scheme, which is also called the  Export Credit Insurance Scheme (ECIS), the insurance cover guaranteed will cover up to 90 percent of the principal and interest. The insurance cover will include both pre and post-shipment credit. The Export Credit Guarantee Corporation of India (ECGC) currently provides credit guarantee of up to 60 percent loss.

Enhanced Insurance Cover: Benefits 

The main aim behind introducing the scheme was to enhance accessibility and affordability of credit for exporters. The decision will help make Indian exports competitive and make ECGC procedures exporter friendly, benefiting MSME exporters with a new scheme for reimbursing taxes, reduced insurance cost and ease of doing business.

The insurance cover is expected to bring down the cost of credit due to capital relief, less provision requirement and liquidity due to quick settlement of claims and will ensure timely and adequate working capital to the export sector.