What is the Nirvik Scheme ?
Nirvik Scheme is related to the Indian business exporters (MSME) and helped to covers their insurance policy. The full form of Nirvik Scheme is Niryat Rin Vikas Yojana. This scheme is available in the 30 exporting sectors and covers higher premium insurance with good credit availability.
Why is the Nirvik Scheme Important for Exporters?
This scheme is launched by the Indian Government and gives insurance cover for Indian Exporters and Industry. Finance Minister Nirmala Sitharaman on Saturday announced NIRVIK (Niryat Rin Vikas Yojana) scheme to provide enhanced insurance cover and reduce the premium for small exporters while presenting Budget 2020-21.
What is the ECIS scheme?
The ECIS scheme is working for the commerce and industry field. The full form of ECIS is the Export Credit Insurance Scheme.
What is the full form of ECGC?
The full form of ECGC is Export Credit Guarantee Corporation of India Ltd. Under this scheme, if you are a small-scale exporter then you can easily afford the loan and increase your credit availability.
Nirvik Scheme Features
- Good Insurance coverage almost 90%
- Foreign export credit interest rates are below 4% and the rupee export credit interest rates 8%.
- Gems, Jewellery and Diamond borrowers have 80 Cr limit.
- Below Rs. 80 crore, the premium rates 0.60 per and beyond Rs. 80 Crore, the rates will be 0.72 per annum.
- If losses are exceeding Rs. 10 Crores then inspection by the ECGC Banks and pay a premium to the ECGC on a monthly basis with principal and interest rate.
Let’s Discuss about Nirvik Scheme Benefits
- Play the major role to improve accessibility and affordability of credit for Indian exporters.
- Exporter friendly.
- Best for the Insurance cover and bring down the cost of credit such as capital relief, better liquidity and quick settlement of claims in play.
- This scheme is mainly for the Micro, Small and Medium Enterprises and exporters and making ECG procedures much more simplistic.