About | Export Credit Guarantee Corporation of India (ECGC) , MAHARASHTRA Check here latest notification

The Export Credit Guarantee Corporation of India (ECGC) plays a crucial role in promoting and safeguarding exports in India. This organization provides protection to Indian exporters against various financial risks, which are often inherent in international trade. Let’s dive into the details of what ECGC is and how it functions.

What is ECGC?

The Export Credit Guarantee Corporation of India (ECGC) was established in 1957 by the Government of India. The primary objective of ECGC is to protect Indian exporters from financial risks that may arise in the course of international trade. When an exporter sends goods to a buyer in another country, there is always a risk associated with receiving payment. To mitigate these risks, ECGC offers various credit insurance schemes to provide a safety net for exporters.

Role of ECGC

1. Protection for Exporters: ECGC provides a safety net for Indian exporters against risks related to delays or non-payment by foreign buyers.
2. Credit Insurance: ECGC offers credit insurance that makes it easier for exporters to obtain loans from banks. This insurance helps mitigate potential losses that may arise due to unforeseen circumstances.
3. Export Promotion: By offering various insurance schemes, ECGC supports and promotes Indian exports, thereby strengthening the nation's economy.
4. Diverse Services: ECGC regularly introduces different services and schemes designed to cater to the varied needs of exporters, including credit insurance, financial advisory services, and risk management.

Schemes Offered by ECGC

ECGC has introduced multiple schemes to address the diverse needs of exporters, such as:

• Standard Policy: Designed for short- and medium-term exports, this policy provides protection to exporters against credit risks.
• SME Policy: Tailored specifically for Small and Medium Enterprises (SMEs), this policy ensures that small businesses have the necessary coverage to operate confidently in the global market.
• Export Factoring: Under this scheme, exporters receive immediate payment, and the risk is transferred to a factoring company.