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    ECGC

    Uploaded by

    Rashmi G hallikar

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    ECGC

    Uploaded by

    Rashmi G hallikar
    3 views15 pages

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    Download as pptx, pdf, or txt
    3 views15 pages

    ECGC

    Uploaded by

    Rashmi G hallikar

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    You are on page 1of 15

    What is ECGC?

    Export Credit Guarantee Corporation of


    India Limited.
    Established in the year 1957 by the Government of India.
    An export promotion organization which functions under
    Ministry of Commerce & Industry, Department of
    Commerce, Government of India.
    ABOUT ECGC
    Fifth largest credit insurer of the world in terms of
    coverage of national exports.

    The present paid-up capital of the company is Rs.1000


    crores.

    Authorized capital Rs.1000 crores.


    Functions of ECGC
    Provides a range of credit risk insurance covers to
    exporters against loss in export of goods and
    services.

    Offers guarantees to banks and financial


    institutions to enable exporters to obtain better
    facilities from them.

    Provides Overseas Investment Insurance to Indian


    companies investing in joint ventures abroad in the
    form of equity or loan.
    ECGC Policies

    Special
    Schemes
    Financial (Transfer Guarantee )
    Standard Policy Specific Policy Guarantees to To protect Banks
    Banks Issuing L/C,
    For short term For exports under Confirming L/C,
    shipments Deferred Payments, Insurance Cover,
    (180 Days) Project Exports, For
    Line of Credit,
    Service exports Giving credit Overseas Investment
    to exporters Insurance & Exchange
    Fluctuation Risk
    Insurance
    Standard Policy-Products
    Small Exporters Policy
    Period of Policy: Twelve months as against 24
    months in the case of Standard Policy.
    Minimum Premium: Premium payable will be
    determined on the basis of projected exports on an
    annual basis subject to a minimum premium of Rs.
    2000/- for the policy period
    Export Turnover Policy :
    Turnover policy is a variation of the standard policy
    for the benefit of large exporters who contribute not
    less than Rs.10 lacks per annum towards premium.
    Thus all the exporters who will pay a premium of
    Rs.10 lacs in a year are entitled to avail of it.
    Specific Shipment Policy -
    Products
    Short Term (SSP-ST)

    Export (Specific Buyers) Policy

    Specific Shipment (Comprehensive Risks) Policy

    Specific Shipments (Political Risks) Policy


    Service Policy – Products
    Specific Services Contract (Comprehensive Risks)
    Policy
    Specific Services Contract (Political Risks) Policy

    Software Project Policy


    IT-enabled Services (Specific Customer) Policy
    Construction Works Policy
    Guarantees to Banks
    Packing Credit Guarantee
    It helps the exporter to obtain better facilities
    from their bankers.
    The Guarantees assure the banks that, in the
    event of an exporter failing to discharge his
    liabilities to the bank, ECGC would make good a
    major portion of the bank's loss.
     The bank is required to be co-insurer to the
    extent of the remaining loss
    Export Finance Guarantee
    This guarantee covers post-shipment advances
    granted by banks to exporters against export
    incentives receivable in the form of cash assistance,
    duty drawback, etc.
    The premium rate for this guarantee is 7 paisa per
    Rs.100 per month and the cover is 75 percent.
    Special schemes
    Transfer Guarantee

    Overseas Investment Guarantee

    Exchange Fluctuation Risk Cover


    Application Process: ECGC
    Application to the ECGC along
    With Rs. 10,000 as initial premium

    A statement to be submitted to the ECGC


    Every month along with last month’s
    Statements & the monthly insurance
    Premium cheque (mandatory)

    The list of exports also includes the value of export


    Shipments & insurance premium to be paid

    This is the general process to avail the services of ECGC


    Application is to be made to ECGC in case of
    non- receipt of payment within 4 months from
    the due date
    Documents required as proof
    E-mails
    Faxes
    Reminders sent through banking channel

    In case of suspicion or fraud, ECGC can blacklist the


    importer or exporter

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