The Export Credit Guarantee Corporation of India Ltd. (ECGC) was established to enhance the export promotion by driving away the risk related to exports on credit to a considerable extent.
It was established by the Government of India in the year 1957. The Export Credit Guarantee Corporation of India is the export promotion organization of the government that is regulated under the direct control of the Government of India’s Ministry of Commerce & Industry, Department of Commerce.
The board of directors regulating the organization consists of representatives from the Reserve Bank of India, the Government of India, insurance and banking and exporting communities. When counted in terms of national exports coverage, the Export Credit Guarantee Corporation of India Ltd. happens to be the fifth largest credit insurer of the world. Presently, the authorized capital of the organization is Rs. 1,000 crores and paid-up capital is Rs. 800 crores.
The major functionalities of the Export Credit Guarantee Corporation of India are the following –
Offering guarantees to the financial institutions and banks and hence enable the exporters to obtain better services and facilities from them
Providing the exporters a range of credit risk insurance coverage against the loss in export of services and goods
Providing Overseas Investment Insurance to Indian companies when they are investing in the joint ventures across the world
The Export Credit Guarantee Corporation of India Ltd. helps the exporters in a number of ways. It offers insurance protection to the exporters against any chance of payment risks. It also offers guidance to exporters in export-related activities. It also helps in easily obtaining export finance from the banks or financial institutions. The ECGC provides information available on other countries depending on its own credit ratings. The corporation also assists the exporters in recovering their bad debts. ECGC is also committed to provide data on the creditworthiness of overseas buyers.
ECGC offers a number of products and services to its clients and customers. The credit insurance policies offered by ECGC are the following:
SCR or Standard Policy
Specific Shipment Policy
Small Exporters Policy
Buyer Exposure Policies
Export Turnover Policy
Consignment Exports Policy
Software Project Policy
IT-enabled Services Policy
Construction Works Policy
ECGC also offers a number of guarantee schemes to the banks. Some of the guarantees offered to the banks by ECGC are the following:
Packing Credit Guarantee
Post-Shipment Export-Credit Guarantee
Export Production Finance Guarantee
Export Finance Guarantee
Export Finance Guarantee
Export Performance Guarantee
The Special Schemes offered by ECGC are the following:
Exchange Fluctuation Risk Cover
Overseas Investment Guarantee
Last Updated on : 27th June 2013