NIRVIK Scheme:- To provide higher export credit disbursement, the Export Credit Guarantee Corporation of India has launched a new scheme known as Niryat Rin Vikas Yojana. Under this scheme, the higher insurance cover will be provided to the small exporters. In this article today we will share with you all the important information related to the NIRVIK Scheme 2024 such as the objective, eligibility criteria, important documents, and the full form of NIRVIK. Also, we will share with you each and every detail related to ECGS & ECIS. To get each and every detail related to NIRVIK you are requested to read our article carefully.
Table of Contents
What Is NIRVIK Scheme?
A new scheme has been introduced by the Export Credit Guarantee Corporation of India to increase the availability of funds for small exporters. Under the NIRVIK Scheme, higher insurance coverage and a reduction in premiums will be provided to the small exporters to enhance exports in India. This scheme was announced by the finance minister Nirmala Sitaraman on 14 September in order to boost exports in India. The main aim of launching this scheme is to provide loans to small exporters so that they will be able to increase their exports at a Higher Level.
- Niryat Rin Vikas Yojana will help provide the higher insurance exporters and reduce the premiums for them
- The disbursement of the credit will increase under this scheme.
- The NIRVIK Scheme which is also known as EGCS & ECIS will also help in simplifying the procedures for claim settlement which helps the small exporters to work at a Higher Level.
- A credit guarantee of up to 60% loss will also be provided by the concerned authorities.
NIRVIK Scheme Details
The details of this scheme are as follows:-
|Name of the scheme||Niryat Rin Vikas Yojana (NIRVIK Scheme)|
|Launched by||Export Credit Guarantee Corporation Of India|
|Launched for||Small Exporter|
|Announced by||Finance minister Nirmala Sitaraman|
|Objective||To provide higher insurance cover to small exporters|
|Benefits||Reduction in premium|
|Insurance amount||Will cover 90% of principal and interest|
|Disbursement of credit in 2018-2019||Rs. 9.57 crore|
|Disbursement of credit in 2017-18||Rs. 12.39|
|Main purpose||Availability of funds for small exporters|
|Credit interest rate||4 to 8%|
|Scheme period||5 years|
Objective Of NIRVIK Scheme
As we all know there are many small exports who do not get enough funds for doing the export at a large scale. And they are not able to get enough funds. By keeping this in mind the export credit guarantee corporation of India has launched a new scheme known as NIRVIK Scheme. Under this scheme, the high credit disbursement will be provided to the small exporter so that they will be able to do export at a high level.
- Under ECGC & ECIS, the higher insurance cover will be provided to small exporters to expand the business.
- The main objective of this scheme is to give small exporter the chance to reduce the premium
- Under Niryat Rin Vikas Yojana the credit guarantee of 60% loss will be provided to the small exporters.
(ECIS) Export Credit Insurance Scheme
The Export Credit Insurance Scheme is also known as NIRVIK Scheme has been designed to provide higher insurance cover to the small exporters against the risk of non-payment from the buyers. It will provide around 90% cover of interest and principal. The main objective of this scheme is to reduce the chances of commercial and certain political risks which lead to non-payment from buyers. Niryat Rin Vikas Yojana will bring positive changes in the small exports unit in order to expand them to a large scale.
- Export Credit Insurance Scheme will help in minimizing the risk of non-payments
- It will help in inconvertibility expropriation, changes in exports or export regulations
- This scheme will help in establishing the market share and compete more in the global market
- NIRVIK Scheme will help in offering more attractive financing terms and reduce the loss or damage to the goods shipped to the buyer.
Enhance Insurance Cover For Exporters
As we all know that the respected finance minister Nirmala Sitharaman has announced the launch of the NIRVIK Scheme in the parliament presenting the union budget of the financial year 2020-21. The main aim of launching this scheme was to provide the hai insurance cover to the exporters so as to reduce the premium for small exporters. This scheme will help in achieving higher export credit disbursement that will help in simplifying the procedure for claims and settlements. The finance minister said that this scheme is presented by the commerce and industry ministry.
- This scheme will guarantee up to the credit of 60% loss
- This will also raise concern over the availability of credit for the exporters.
Benefits And Features Of NIRVIK Scheme
The benefits and features of this scheme are as follows:-
- A new scheme has been launched by the Export Credit Guarantee Corporation of India
- The name of this scheme is NIRVIK Scheme
- The full form of NIRVIK Scheme isNiryat Rin Vikas Yojana
- This scheme is also known as (ECIS) Export Credit Insurance Scheme.
- The main aim of launching this scheme is to increase higher export credit disbursement
- Under this scheme, the insurance cover will be provided to the small exporters
- It will help these small exporters to enhance export in India
- Along with that, they will be able to move their small scale export to large scale
- The (ECIS) Export Credit Insurance Scheme which is also known as NIRVIK Scheme will help in reducing the premiums for the exporters.
- Under this scheme, 60% losses will be provided by the concerned authorities
- The small exporters will now be able to do export at a high level
- Around 20% of the cover of interest and principal will be provided under NIRVIK Scheme
- Small exporters of India will be able to expand their exports with the help of funds which are provided under this scheme.
- Along with that, the insurance cover will be provided to the exporters in case if the foreign buyer is unable to pay the amount.
Niryat Rin Vikas Yojana
Niryat Rin Vikas Yojana which is also known as NIRVIK Scheme has been announced by the Nirmala Sitharaman to provide enhanced insurance cover to the small exporters. Along with that, the small exporters will get a reduction in premium and simplified procedures for the claim settlement. The concern has been raised by the small exporters or the availability of credit which will be settled for export credit guarantee Corporation with the help of NIRVIK Scheme. Under Niryat Rin Vikas Yojana, the exports have expanded by 1.8% in December 2019 to 27.36 billion USD. And for the year December 2019-20, the export has been expanded to around 1.96% to $ 239.29 billion leaving behind a trade of 118.10 billion.