• This endeavour was presented at a time when 10 of the 30 exporting enterprises had a considerable decrease in outbound shipping in 2019. 
  • India’s exports declined nattily for the 5th time in a series in December 2019, resulting in a trade deficit of USD 118.10 billion. 
  • Also, the scheme’s growth was necessary since exporters were worried about funding availability. 


  • The NIRVIK Initiative (Niryat Rin Vikas Yojana) is a remarkable strategy launched by the Export Credit Guarantee Corporation of India (ECGC) to enable loan financing. 
  • It also contributes to more prominent finance availability for miniature-scale exporters. 
  • The ambition was disclosed by India’s Finance Minister during the Union Budget for 2020-21, and it was declared that it will improve the nation’s export sector. 

Main Aim of the Scheme

  • The scheme’s main purpose is to deliver adequate insurance scope for exporters while simultaneously lowering costs for small-scale exporters. 
  • It is also anticipated that such a step will result in improved export credit distribution. 

Features of The NIRVIK Scheme:

  1. Development of the trade sector-: The central government’s primary goal is to deliver a much-needed increase to the export and commercial sectors.
  2. Simple loan application -: Under this initiative, exporters would be capable to apply for loans from financial institutions. The initiative also ensures that the procedure of applying for business finance will be easier. Banks will also be able to expand loans more effectively and efficiently.
  3. Rate of interest on loans -: Any short exporter who applies for a business loan under this initiative will be levied an annual interest rate of 7.6%.
  4. Coverage principal and interest amounts -: With the advent of this new central government agenda, small exporters will be allowed a minimum of 90% coverage from the central authority, on both the principal and interest aggregates.
  5. Refunding bank losses -: A paramount declaration elucidates that banks will no longer mourn as an outcome of loan nonpayment. It will be the ECGC’s obligation to repay the banks if an exporter fails to repay the credit amount.
  6. Reduction in insurance premium rates-: Insurance premium costs are being lowered since insurance coverage is mandated for both small and large exporters. The yearly insurance gratuity has been lowered from 0.72 % to 0.60 % under the new scheme’s guidelines. This establishment will be available only to a select group of exporters. 
  7. Tenure of the program -: The respective minister has said that the scheme would persist for five years once it is officially projected.
  8. Bank refund period -: Small exporters may undergo financial flops and fail to compensate their bank loans. The program assures banks that if they claim impairments, they would acquire 50% of the credited amount. Within 30 functional days, the funds will be repositioned in the bank.
  9. Encourage banks to make loans -: As this scheme safeguards banks, this financial organisation will be slightly keen to deny a loan application from a small exporter. 

Key Highlights of the NIRVIK Scheme:

  1. It presently delivers a credit guarantee of up to 60% loss.
  2. To enhance export credit allocation
  3. Enhances insurance coverage
  4. Premium deduction for small exporters
  5. The process for resolving claims has been streamlined.
  6. In 5 years, it is predicted to stimulate exports of around Rs. 30 lakh crore. 

Eligibility to Apply for Benefits:

  • Small exporters only: Only small exporters would be qualified to enlist for and profit from this new centrally funded initiative, according to the scheme guidelines.
  • Indian-owned businesses:  In order to profit from this plan, the business must be possessed by an Indian citizen.
  • Bank account limit: The scheme particulars state that the low premium rate would only be open to exporters with bank account limitations that do not exceed Rs. 80 crores.

The NIRVIK Scheme’s Benefits:

  • The NIRVIK Scheme will recreate a pivotal part in expanding exporters’ access to and affordability of credit, creating Indian exports more contesting.
  • It will eradicate red tape and other procedural limitations in order to evolve more exporters agreeably.
  • With variables such as capital reserve, enhanced liquidity, and rapid claim recompense in play, an extended insurance range is proposed to lower credit costs.
  • MSMEs (Micro, Small, and Medium Enterprises) will profit as well due to enhanced relief of doing trade and simplified ECG procedures. 


By delivering higher insurance coverage to banks, Nirvik creates provisions for lenders to be remunerated occasionally by the government, if loans are not repaid. This and other actions had expected to increase the convenience of the banks in endorsing loans for exporters.