NIRVIK (Niryat Rin Vikas Yojana) was an export credit insurance scheme introduced by the Government of India through ECGC. It was designed to provide enhanced insurance cover to exporters and make export credit more accessible by reducing banks’ risk.
The scheme was intended to support exporters, particularly by improving the availability of credit and reducing the cost of borrowing. As NIRVIK was introduced as a specific government scheme, businesses should check current ECGC and government guidelines to confirm whether any related benefits are presently available.
How It Works:
- Exporters apply for eligible export credit.
- ECGC provides the applicable insurance cover.
- The bank receives protection against covered risks.
- Exporters get better access to credit.
- Claims are handled under ECGC rules.
Benefits:
- Improves access to export credit
- Reduces banks’ lending risk
- Provides higher insurance cover
- Supports exporters’ working capital needs
Example:
An Indian exporter needs bank finance to fulfill a large overseas order. Under an eligible NIRVIK arrangement, ECGC cover can reduce the bank’s risk and support the exporter’s access to credit.