NIRVIK Scheme introduced to enhance loan availability for exports and ease the lending process by the Ministry of Commerce and Industry through Export Credit Guarantee Corporation (ECGC). The scheme is beneficial for Indian exports competitive, and also it makes ECGC exporter friendly. Under NIRVIK Scheme, the consumers and exports will be covered up to 90% and will refund 90% to the banks. All these by including the principal and interest, if in case of any loss. So, overlay the NIRVIK Yojana Scheme is very beneficiary for the consumers. In this article, we have shared the details about this NIRVIK Yojana Scheme, benefits, eligibility, application form, etc.
ECGC has announced the NIRVIK Scheme to ease the lending process and enhance the loan availability for the exporters. On 16th September 2019, the details of the scheme were shared by the Union Minister of Commerce and Industry and Railways, Mr Piyush Goyal, during a press conference. Before that, on 14th September 2019, this scheme published by the Finance Minister Nirmala Sitharaman.
The NIRVIK Scheme is also known as the “Export Credit Insurance Scheme (ECIS)”. The NIRVIK Yojana will be guaranteed to cover up to 90 percentage of the principal and interest amount. This insurance coverage includes both pre and post-shipment credit. The ECGC currently offers a credit guarantee of up to 60% loss.
Niryat Rin Vikas Yojana Scheme 2019
The NIRVIK Yojana Scheme aims to make the loans more comfortable to access for the exporters, and also it simplifies the lending process. The ECGC provides the credit guarantee of up to 60% loss to the exporters. The insurance cover guaranteed will cover up to 90% of the principal and interest of the loan under the NIRVIK Scheme, which has included in both pre and post-shipment credit.
The application form for the NIRVIK Yojana will available soon on its official website. The exporters can easily apply for the loan through the scheme online. For more information about the NIRVIK eligibility, required documents, and benefits, check the below article. We here clearly discussed all of those in the next sections to make things simpler.
What is NIRVIK Scheme ECGC?
The full form of ECGC is Export Credit Guarantee Corporation in India, which was established in 1957 by the Indian Government to promote exports and provide credit insurance services.
The ECGC aims to provide Export Credit Insurance to the Banks (ECIB) to protect the banks from the losses. Through this, the exporter borrower has protected from the pre-shipment and post-shipment stage. All these carried out under the NIRVIK Scheme launched by Piyush Goshal.
NIRVIK Scheme Details
|Name of the Yojana||NIRVIK Scheme|
|Approved by||Government of India|
|Announced by||Finance Minister Nirmala Sitharaman|
|Published Date||14th September 2019|
|Details Shared By||Piyush Goyal|
|Announced Date||16th September 2019|
Benefits of NIRVIK Yojana Scheme
The NIRVIK Scheme is providing lots of benefits to its exporters. Some of the benefits have discussed below.
- The scheme enhances the accessibility and affordability of credit for the exporters.
- The NIRVIK Yojana is making Indian exports competitive.
- NIRVIK is also making the ECGC procedures exporter friendly.
- Through this scheme, insurance covers up to 90% of the capital interest and liquidity due to the quick settlement of claims.
- The scheme ensures timely and adequate working capital for the export sector.
Key Features of the NIRVIK Scheme
Here we have discussed some key features about the NIRVIK Scheme.
- Through this scheme, the insurance cover guaranteed up to 90% of the interest and capital amount.
- For the exporters, the increased cover is ensuring that the foreign and rupee export credit interest is below 4% and 8%, respectively.
- Under the NIRVIK Scheme, the insurance cover includes both Pre and post-shipment credit.
- The Jewellery, Diamond and gems sector borrowers up to the limits of Rs. 80 crore, which has a higher premium rate. As a comparison to the non-GJD sector, the borrowers of this category are higher loss ratios.
- An account, which has the limits below Rs.80 crore, the annual premium rate, will be moderated to 0.60. And if the account limits exceeding Rs. 80 crore, the annual allowance will be 0.72.
- NIRVIK mandates inspection of the bank documents and records by ECGC for losses exceeding Rs. 10 crores as against Rs. 1 crore under this scheme.
- The banks shall pay the monthly premium to ECGC on the principal and interest as the cover under the NIRVIK Scheme.
Niryat Rin Vikas Yojana SchemeEligibility
The exporters can apply for the Niryat Rin Vikas Yojana scheme application form through its official website. Before applying, an applicant has to fulfil the eligibility, which is recommended by the Government of India.
- The candidate must be an Indian Citizen.
- The age of the applicant should be above 18 years.
- The candidate must belong to the MSME sector.
Documents Required For NIRVIK Scheme
The candidate has to submit certain documents along with the NIRVIK application form.
- All the business documents of the candidate
- All the bank details
- government identity proof
How to Apply for NIRVIK Scheme?
Exporters can apply for the NIRVIK Scheme through its official website. The central government will launch the website very soon for the candidates. Through this, they can find the NIRVIK application form and can check the details about the scheme. For more projects, related updates and information, check our website regularly. We will notify you when the site launched.
NIRVIK Contact Details
For more information and updates, the candidate can also check the below link.
FAQs about NIRVIK Scheme
What is NIRVIK Scheme?
NIRVIK Scheme is a plan for the exporters, which helps to enhance loan availability.
Who announced this NIRVIK Scheme and when?
The Finance Minister Nirmala Sitharaman has announced this NIRVIK Yojana on 14th September 2019.
For more government schemes related information, check Timesalert.