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India’s exports fell by 1.8 per cent in December 2019 for the sixth month in a row. As a result, exporters have expressed concerns about loan availability. Taking this into account, the Finance Minister suggested the NIRVIK plan, also known as the Export Credit Insurance Scheme (ECIS), when proposing the Budget 2021-21.


To properly grasp this scheme, you should first read about the NIRVIK full name, Niryat Rin Vikas Yojana. The Commerce Ministry of India is working on this initiative, and a debut date has not yet been set. This Central Government scheme, launched by the Export Credit Guarantee Corporation of India, aims to increase capital availability for small exporters.

Now, let’s take a quick look at some of the scheme’s goals:

  1. It provides exporters with extensive insurance coverage, allowing them to expand their operations.
  2. The plan also allows small exporters to lower their policy premiums.
  3. It also offers exporters a 60 per cent credit guarantee in the event of a loss.
  4. The major goal of Niryat Rin Vikas Yojana is to provide high credit disbursement to small exporters in order to help them export at a better level.
  5. This system includes a streamlined claim settlement method, making it easier for exporters to work.

Exports decreased by 1.96 per cent and imports decreased by 8.9 per cent from December to April 2019-20. This resulted in a trade deficit of around $118.10 billion. As a result, the implementation of this strategy is an urgent necessity.


The fundamental goal of launching this scheme is to enhance exports and other commercial sectors. Before proceeding with its implementation, examine the following key elements of this scheme:

Loan Application

With this programme, you can easily apply for loans from reputable financial organisations. It also ensures that the business credit application process is straightforward.

Competitive Interest Rates

Small exporters can obtain business loans at an annual interest rate of 7.6 per cent.

Coverage Interest and Principal Amounts

Under this government-sponsored programme, small exporters can obtain 90 per cent coverage on both principal and interest amounts.

Insurance Premium Rates Have Been Reduced

The insurance premium under this programme has been reduced from 0.72 per cent to 0.60 per cent.


According to the minister, the scheme would run for five years once it is implemented.

The NIRVIK scheme also increases loan availability and simplifies the lending process for a variety of SMEs, MSMEs, and Gems, Jewellery, and Diamonds (GJD) industries. The Government of India (GOI) proposed this scheme in order to boost export output and provide assured insurance coverage for pre-and post-shipment credit.


The following are some of the advantages of the Niryat Rin Vikas Yojana scheme that you should be aware of:

  1. Because of capital relief, lowers credit costs.
  2. Under this plan, exporters will have easy access to money.
  3. It provides increased liquidity as a result of quick claim settlements and the continual availability of operating capital for export production.
  4. This plan allows Indian exporters to compete in both domestic and international markets.
  5. It provides decreased insurance costs and tax refunds in order to boost productivity and credit lending.
  6. The plan assures that the foreign and domestic currency rates remain below 4% and 8%, respectively.
  7. This strategy allows exporters to grow their small-scale firms into large-scale enterprises.
  8. The scheme reduces the possibility of nonpayment.

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