Ministry of Commerce & Industry through Export Credit Guarantee Corporation (ECGC) on Monday introduced a new Export Credit Insurance Scheme (ECIS) called NIRVIK 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 and Minister of State for Commerce & Industry, Hardeep Singh Puri, in a press conference in New Delhi on Tuesday.

The scheme was announced by the Finance Minister Nirmala Sitharaman to boost exports on 14th September 2019 in New Delhi.

Piyush Goyalsaid that the gems, jewellery 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.