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