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Niryat Rin Vikas Yojana- scheme that provides financial assurance to exporters

The central government has introduced the Niryat Rin Vikas Yojana, a new scheme that provides financial assurance to exporters and banks that lend to them. The Indian economy is built on two major pillars: trade and commerce. There are small, medium, and large exporters who pool their revenue and deposit it in the central government’s coffers. However, the ups and downs in the market create financial instability for small exporters.

The NIRVIK scheme’s key features:

Trade sector growth – The government’s main goal is to provide the export and commercial sectors a much-needed boost. According to estimates, export credit will increase by 30% as a result of the implementation of this initiative.

Easy loan application – Exporters will be able to apply for loans from financial institutions under this scheme. The initiative also ensures that the process of applying for business credit will be streamlined. Banks will also have an easier time disbursing the loans.

Rate of interest on loans – Any small exporter who applies for a business loan under this scheme will be charged an annual interest rate of 7.6 percent.

Principal and interest amounts covered — With the launch of this new central government scheme, small exporters will be eligible for a whopping 90 percent coverage from the central authority, both on the principal and interest sums.

Reimbursement of bank losses – A significant declaration clarifies that banks would no longer be harmed by non-payment of loans. If an exporter fails to repay the credit amount, the ECGC will be responsible for refunding the banks.

Insurance premium costs are reduced – Insurance coverage are required for both small and large exporters. The annual insurance premium has been reduced from 0.72 percent to 0.60 percent under the new scheme’s guidelines. This facility will only be available to a select group of exporters.

Tenure of the scheme — Once the scheme is formally inaugurated, the minister has stated that it will run for five years in a row.

Small exporters sometimes suffer financial losses and are unable to repay their bank loans. If the banks file a claim for damages, the system guarantees them 50% of the credited sum. Within 30 working days, the funds will be sent to the bank.

Encourage banks to give loans – Because the system protects banks as well, these financial institutions will be less likely to reject a loan application from a small exporter.

NIRVIK’s Eligibility Criteria:

Small exporters- Only small exporters would be allowed to register for and get the benefits of this new centrally funded scheme, according to the scheme guidelines.

Indian-owned businesses – The business must be owned by an Indian citizen to qualify for the benefits of this scheme.

Bank account limit requirement — The cheap premium rate would only be available to exporters with bank account limits that do not exceed Rs. 80 crore, according to the scheme guidelines.

Documents required for NIRVIK scheme:

  1. Business registration documents
  2. GST certificate
  3. Business PAN Card
  4. Identity proof of the owners
  5. Bank loan certificates
  6. Insurance documents

Please visit the relevant website to apply for the scheme.

ECGC’s website can be found at

Also read: Operation Green : Scheme launched to work for the betterment of farmers

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