On 18.09.2019 the central government announced Niryat Rin Vikas Yojana (NIRVIK) that offers financial security to such exporters and banks that offer them loans. Features of this project and eligibility and documents necessary for application are.
Growth of the trade sector
The primary motive of Niryat Rin Vikas Yojana (NIRVIK) is to offer boost to the export and business sectors. It estimates suggest with the implementation of this project, export credit will shoot up by 30%.
Easy loan application
Under this scheme, exporters will also get the opportunity to apply for loan from financial institutions. The scheme also ensures that the business credit application mode will be simplified. The banks will also be able to distribute the loans easily.
Rate of interest on the loans
If any small exporter applies for a business loan under this scheme, the loan will be extended to an interest rate of 7.6% on yearly basis.
Coverage principal and interest amounts
With the launch of this new central government scheme, small exporters will be entitled to receive a whopping 90% coverage, both on the principal and the interest sums from the central authority.
Refunding bank losses
An important statement sheds light on the fact that banks will no longer suffer due to non-payment of loans. It will be the responsibility of the ECGC to refund the banks in case an exporter fails to repay the credit amount.
Reduction in insurance premium rates
It is mandatory for small and big exporters to opt for insurance policies. As per the guidelines of the new scheme, the yearly insurance premium has been slashed from 0.72% to 0.60%. This facility will be given to a specific section of exporters only.
Tenure of the scheme
The respective minister has declared than once the scheme is officially launched, it will run for five successive years.
Bank refund span
Sometimes, the small exporters face financial losses, and fail to repay the bank loan. The scheme ensure the banks that they will get 50% of the credited amount if they claim the damages. The sum will be transferred to the bank within 30 working days.
Encourage banks to give loans
As the scheme safeguards the banks as well, these financial institutions will not feel the urge to turn down the loan application, made by a small exporter.
This Scheme is for Small exporters only
The scheme details highlight that only small exporters will be permitted to apply and acquire the perks of this new central-sponsored scheme.
Business owned by Indians
To attain the benefits of this scheme, the business must be owned by an Indian citizen.
Bank limit requirement
It has been mentioned in the scheme details that the low premium rate will only be applicable for the exporter, who have bank account limits that do not cross the Rs. 80 crore mark.
Documents necessary for application
Business registration documents
No matter what type of export agency it is, the owner needs to product all official documents, which highlight that it is a legitimate business house.
GST certificate
All small exporters must have the necessary registration documents, which are issued by the GST department.
Business PAN Card
If the exporters do not have a PAN card that has been issued in the name of the organization, they will not be able to apply for the scheme benefits.
Identity proof of the owners
Whether the company is owned by a single person or is a partnership firm, the identification document, like the Aadhar card must be submitted for checking the authenticity of the claimants.
Bank loan certificates
In case the applicants had applied and received a bank loan, then all loan-related documents must be submitted for scrutiny.
Insurance documents
It is mandatory for the interested small exporters to submit all insurance policy related papers, if they desire to claim the benefits.
The scheme will assist in safeguarding the interest of the small exporters. It will encourage them to take more risks, knowing that the central government will support them in case if financial crisis. These measures will promote the trade and commerce sectors in the country. Thus, the overall financial revenue of the nation will also increase.
To apply for the scheme please visit respective website.
Website: https://www.ecgc.in/
Surakshit Matritva Aashwasan (SUMAN) Scheme
Food Safety Mitra (FSM) Scheme
NEAT Artificial Intelligence Learning Scheme
Common Livestock Diseases Control Scheme
NISHTHA Teachers Training Programme
Sabka Vikas (Legacy Dispute Resolution) Scheme (SVLDRS)
One Nation One Ration Card Scheme
Paramarsh Scheme in Higher Education
Agriculture Export Policy 2018
PM Matsya Sampada Yojana (PMMSY)
Jal Shakti Abhiyan (National Water Conservation Scheme)
PM Laghu Vyapari Mandhan Pension Yojana (PMLVMY) or Karam Yogi Mandhan Scheme
Credit Guarantee Fund Scheme for Education Loans (CGFEL)
National Common Mobility Card (One Nation One Card)
Scheme for Higher Education Youth in Apprenticeship and Skills (SHREYAS)
Pradhan Mantri Kisan Samman Nidhi Yojana (PM-KISAN)
Pradhan Mantri Shram Yogi Maan-dhan Yojana (PM-SYM)
Aarthik Aarakshan - 10% EWS Reservation Quota for Upper Caste