What is ECGC?
• Export Credit Guarantee Corporation of
• 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.
• Seventh largest credit insurer of the world in
terms of coverage of national exports.
• The present paid-up capital of the company is
• 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
• Provides Overseas Investment Insurance to Indian
companies investing in joint ventures abroad in the
form of equity or loan.
or civil war
For short term
For exports under
(Transfer Guarantee )
To protect Banks
Line of Credit,
Insurance & Exchange
• 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 lacs per annum
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)
• Specific Shipments (Political Risks) Policy
Service Policy – Products
• Specific Services Contract (Comprehensive
• Specific Services Contract (Political Risks)
• 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
• 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
• 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
• 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 nonreceipt of payment within 4 months from the due
• Documents required as proof
– Reminders sent through banking channel
In case of suspicion or fraud, ECGC can blacklist the importer