Nirvik (Niryat Rin Vikas Yojana) Scheme {निर्यात ऋण विकास योजना}

Overview

First announced in September 2019, by the Finance Minister Nirmala Sitharaman, Niryat Rin Vikas Yojana (Nirvik scheme) has been launched to provide enhanced endurance cover and reduce the premium for small exporters.

Export Credit Insurance Scheme

• The Commerce and Industry Ministry is working on this scheme.
• Under the Export credit insurance scheme (ECIS), the insurance guaranteed could cover up to 90% of the principal and interest.
• Both pre and post-shipment credits will be included in this insurance.
• ECGC will also provide banks with additional comfort as the credit rating of the borrowers will be enhanced to an AA rated account. The increase in cover will make sure that for the exporters, foreign rupee export credit rates are below 4% and 8% respectively.

Objectives and Implementation

• Nirvik scheme aims at providing high cover insurance, a reduction in the premium for small exporters, and a simple and easy, user-friendly procedures for claim settlements.
• It aims at breaking down the complex processes to make the lending process simple and to enhance the availability of loans for exporters.
• The enhancement of accessibility and affordability of credit for exporters will be taken into consideration as well.
• It aims at making the ECGC procedures exporter-friendly and to make Indian exports more competitive. The MSME exporters will benefit from the scheme for reimbursing taxes, reduced insurance cost, and ease in managing the Business.
• The insurance cover will bring down the costs of credit due to the capital relief, less provision requirement, and liquidity and because of a simplified and quick settlement of claims. It will also ensure timely and adequate working capital for the export sector.

Facilities

Under the Nirvik Scheme, Finance minister Nirmala Sitharaman has proposed an allocation of 27,300Cr rupees for industry and commerce 2020-21. Under this scheme, 80Cr rupees will be the limit of the Gems, Jewellery and Diamond (GJD) sector borrowers. The premium rate of the GJD sector will be higher, compared with those belonging to Non-GJD sector borrowers.

Eligibility Criteria, Application Process And Documents Required

As of now, these details have not been given and are yet to be disclosed to the public. 

Official Website

Visit the official website here.

Frequently Asked Questions

Q. What is the amount proposed for allocation for industry and commerce, for 2020-21?

The amount proposed for allocation for industry and commerce is 27,300Cr rupees.

Q. Does the insurance cover include both pre and post-shipment credit?

Yes, Insurance cover includes both pre and post-shipment credit.

Q. Under ECIS, what is the percentage of principal and interest that could be covered under insurance guaranteed?

Insurance guaranteed could cover up to 90% of the principal and interest.

Q. How will ECGC insurance cover provides additional comfort to the banks?

The banks will get additional credit as the credit rating of the borrower will be enhanced to AA rated account.

Q. The insurance cover will ensure that the foreign rupee export credit interest rates stay below?

The insurance cover will ensure that the foreign rupee export credit interest rates are below 4% and 8% respectively for the exporters. 

Q.What will be the limit for GJD sector borrowers?

The limit for Gems, Jewellery and Diamond sector borrowers will be 80Cr rupees.