ECGC Introduces scheme of loan availability for Exporters

Question: What is the name of the scheme launched recently by Ministry of Commerce to enhance loan availability for Exporters?
(a) Nirvana
(b) Nirvik
(c) Nirmaan
(d) Nishpadan
Answer: (b)
Related fact:

  • Ministry of Commerce & Industry through Export Credit Guarantee Corporation (ECGC) has introduced a new Export Credit Insurance Scheme (ECIS) called NIRVIK Scheme 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 in a press conference in New Delhi on September 16 2019. It was announced by the Finance Minister Nirmala Sitharaman to boost exports on 14th September 2019 in New Delhi.

The Scheme:

  • The gems 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.

Links:
https://www.business-standard.com/article/news-cm/ecgc-introduces-nirvik-to-enhance-loan-availability-for-exporters-119091700145_1.html
https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1585226