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Export Credit Guarantee Corporation of India (ECGC) is an Indian enterprise that is administered by the Government of India through the Ministry of Commerce and Industry. ECGC which is wholly owned by the Indian Government was set up in year 1957 with the intention to promote exports by offering credit risk insurance and allied services to the exporters.
Export Credit Guarantee Corporation of India is fundamentally an export promotion organization, which seeks to enhance the competitiveness of Indian exports by offering them credit insurance covers.
Over the years ECGC has considered various export credit risk insurance products suiting the needs of Indian exporters. This corporation was set up for ensuring the smooth functioning of Indian exporters by minimizing the risks associated with the payments emanating from other nations. This insurance cover which is provided by ECGC also assists the Indian exporters with better access to credit facilities from banks and other financial institutions.
ECGC is the 5th largest credit insurance company dealing with the exports of any country. Export Credit Guarantee Corporation of India offers protection against the non-payment by an importer. Due to this insurance cover, the financial institutions are better placed for lending and providing larger credit to exporters. ECGC also offers credit ratings as well as shares information on various countries and risks associated with doing business with/in those countries.
ECGC provides insurance protection to Indian exporters against payment risks. It helps the exporters in a number of ways which include:
ECGC offers several types of insurance covers and these could be classified into the following groups:
Special policies ECGC offers the following types of guarantees to the exporters:
Over the years the Export Credit Guarantee Corporation of India has proved to be useful to Indian exporters. It pays 80 to 90% of the loss incurred by Indian exporters. The remaining 10 to 20% of the loss alone has to be borne by the exporters.
However, it doesn’t cover the risks mentioned below: