Why is it in the news?
- The Export Credit Guarantee Corporation of India (ECGC) is optimistic that the Nirvik scheme would give a fillip to export lending and insurance cover for export credit.
- The scheme announced by the Minister for Commerce and Industry was expected to get government approval soon.
More in the news
- The Nirvik Scheme:
(1) The new scheme will give 90% coverage of the principal and interest of the loan for pre- and post-shipment credit, and half of this will be provided in 30 days.
(2) At the moment, the Export Credit Guarantee Corporation (ECGC) gives a cover of 60% of the loss to banks.
(3) Also, the claim inspection would be waived for up to ₹10 crore. The previous limit for document inspection was ₹1 crore.
- For claims higher than this amount, inspection of bank documents and records by ECGC officials will be mandatory.
Source
The Hindu.