{"id":41186,"date":"2022-03-16T11:37:50","date_gmt":"2022-03-16T06:07:50","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=41186"},"modified":"2022-03-16T11:39:36","modified_gmt":"2022-03-16T06:09:36","slug":"nirvik-scheme-an-exporter-benefit-scheme","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/nirvik-scheme-an-exporter-benefit-scheme\/","title":{"rendered":"NIRVIK Scheme: An Exporter-Benefit Scheme"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The NIRVIK Scheme is introduced under the\nExport Credit Guarantee Corporation of India. The scheme aims to provide high\ninsurance covers lingered with reduced premium to eligible exporters in India. The\nscheme came to effect on February 1st 2020, after being announced by the honorable\nFinance Minister. It aims to boost the export of the country. <\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/nirvik-scheme-an-exporter-benefit-scheme\/#Details_of_the_NIRVIK_Scheme\" >Details of the NIRVIK Scheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/nirvik-scheme-an-exporter-benefit-scheme\/#Features_of_the_NIRVIK_Scheme\" >Features of the NIRVIK Scheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/nirvik-scheme-an-exporter-benefit-scheme\/#Benefits_of_the_NIRVIK_Scheme\" >Benefits of the NIRVIK Scheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/nirvik-scheme-an-exporter-benefit-scheme\/#What_are_the_Documentations_required_for_the_enrolment_for_NIRVIK\" >What are the Documentations\nrequired for the enrolment for NIRVIK?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/nirvik-scheme-an-exporter-benefit-scheme\/#An_Overview_on_Export_Credit_Guarantee_Corporation_of_India\" >An Overview on Export Credit\nGuarantee Corporation of India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/nirvik-scheme-an-exporter-benefit-scheme\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Details_of_the_NIRVIK_Scheme\"><\/span>Details of the NIRVIK Scheme<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>The\nNIRVIK scheme aims to render high insurance coverage for Indian exporters while\nminimizing the premiums for small-scale exporters. It may result in higher\nexport credit disbursement.<\/li><li>The\nscheme came into effect when 10 out of 30 exporting sectors witnessed a\nnegative surge in terms of outbound shipment in 2019. <\/li><li>India&#8217;s\nexports in Dec 2019 fell for the fifth time on the trot by around 1.8 per cent\nto $357.39 b, leaving a trade deficit of $118.10 billion.<\/li><li>The\nincreasing concerns around credit availability amongst small scale exporters\nhave led to the introduction of the NIRVIK Scheme.<\/li><li>The\nadvent of the NIRVIK Scheme declined the credit disbursement to INR 9.57 lakh\ncrore in 2018-2019 from INR 12.39 lakh crore in 2017-18<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Features_of_the_NIRVIK_Scheme\"><\/span>Features of the NIRVIK Scheme<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Insurance\ncoverage shall be up to 90 per cent of the principal amount &amp; interest.<\/li><li>The\nextended coverage shall ensure that export credit interest rates are below 4\nper cent. The rupee export credit interest rates shall be confined to 8 per\ncent. <\/li><li>Both\npre and post-shipment credit shall be part of the new scheme.<\/li><li>Borrowers\nfrom the jewellery, jems, &amp; diamond with a limit of over INR 80 crores\nshall have a higher premium rate than those from sectors as the loss ratio is\nhigh. <\/li><li>Those\naccounts have a limit below Rs. 80 crore, the premium rates shall be moderated\nto 0.60\/annum. For those whose limits are higher than Rs. 80 Crore, the rates\nshall be 0.72\/annum. <\/li><li>In\nthe event that there shall be losses surpassing Rs 10 crores, the exporter\nshall undergo inspection by the ECGC. The bank shall pay a monthly premium to\nthe ECGC as the principal and interest are catered for both outstanding.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Benefits_of_the_NIRVIK_Scheme\"><\/span>Benefits of the NIRVIK Scheme<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>The\nNIRVIK Scheme shall play pivotal roles in strengthening accessibility and affordability\nof credit which in turn would make the Indian exports more competitive.<\/li><li>The\nscheme undermines red-tapism and other procedural hindrances which will\neventually benefit exporters. <\/li><li>The\nextended insurance cover shall reduce the cost of credit. <\/li><li>The scheme\nensures better capital relief, improved liquidity, and prompt settlement of\nclaims. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Documentations_required_for_the_enrolment_for_NIRVIK\"><\/span>What are the Documentations\nrequired for the enrolment for NIRVIK?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>Below is the list of documentation for\nthe enrolment under the NIRVIK scheme<\/em><\/strong><\/p>\n\n\n\n<ul><li>Business Registration Documents: Regardless of the type of export agency, the applicant needs to furnish all official documents evidencing their relationship with business. <\/li><li>GST Certificate: Small exporters must secure a <a href=\"https:\/\/corpbiz.io\/gst-registration\"><strong>GST certificate<\/strong><\/a> via the concerned tax authority <\/li><li>Business PAN Card <\/li><li>Identity Proof such as Aadhaar <\/li><li>Certificate from the designated bank<\/li><li>Insurance-related documents<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"An_Overview_on_Export_Credit_Guarantee_Corporation_of_India\"><\/span>An Overview on Export Credit\nGuarantee Corporation of India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>ECGC Ltd is a government-backed institution that was established in 1957. It aims to incentivize exports via the facilitation of credit risk insurance and allied services for exports. Over the years, it has formulated an array of insurance schemes to cater for the requirement of Indian exporters. <\/li><li>ECGC is fundamentally an export boosting institution that seeks to strengthen the competitiveness of the Indian exports by facilitating them credit insurance covers. <\/li><li>ECGC has rolled out various insurance schemes that enable commercial banks to extend export credit. <strong>ECGC<\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Export_Credit_Guarantee_Corporation_of_India\"><strong>[1]<\/strong><\/a><\/sup> imposes a nominal interest rate against the credit disbursed to the exporters. <\/li><\/ul>\n\n\n\n<p><strong><em>ECGC provides: <\/em><\/strong><\/p>\n\n\n\n<ul><li>A\nrange of insurance covers against the risk of non-realization of export\nproceeds owing to political or commercial risks<\/li><li>Different\nranges of credit cover to banks and other institutions to empower them to\nextend credit facilities to exporters.<\/li><li>Export\nFactoring facility for Micro, Small, Medium Enterprise sector, which is a\npackage of financial items comprising of credit risk protection, working\ncapital financing, and maintenance of sales ledger and collection of export\nreceivables from the buyer resided abroad. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The NIRVIK Scheme is an exporter-benefit scheme that allows exporters to avail high insurance covers with minimal paper works or procedural hindrances. The insurance covers under the scheme attract minimal premium rates. The Finance Ministry launched this scheme with an aim to advocate India\u2019s export.\u00a0 <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our Article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/transport-and-marketing-assistance-scheme-tma-scheme-for-exporters\/\">Transport and Marketing Assistance Scheme (TMA scheme) for Exporters\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The NIRVIK Scheme is introduced under the Export Credit Guarantee Corporation of India. The scheme aims to provide high insurance covers lingered with reduced premium to eligible exporters in India. The scheme came to effect on February 1st 2020, after being announced by the honorable Finance Minister. It aims to boost the export of the [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":41196,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[165],"tags":[2184],"acf":{"service_id":"16"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":4140,"readingTime":3,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/41186"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=41186"}],"version-history":[{"count":11,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/41186\/revisions"}],"predecessor-version":[{"id":41199,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/41186\/revisions\/41199"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/41196"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=41186"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=41186"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=41186"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}