What is the main function of Export Credit Guarantee Corporation ECGC?

ECGC is essentially an export promotion organization, seeking to improve the competitiveness of the Indian exports by providing them with credit insurance covers. The Corporation has introduced various export credit insurance schemes to meet the requirements of commercial banks extending export credit.

Which guarantee is given by ECGC?

Various guarantees offered by ECGC to banks are: Packing Credit Guarantee. Export Production Finance Guarantee. Post-Shipment Credit Guarantee.

What is an export credit guarantee?

Guarantees for bank term loans to facilitate the provision of those loans to overseas buyers of goods and services from UK exporting companies. Goods typically exported are military equipment and aircraft. Political risk insurance to UK investors in overseas markets.

What is ECGC explain the risk covered and guarantees provided by ECGC?

ECGC provides a wide range of credit risk insurance cover to exporters against loss in export of goods and services. It also offers guarantees to banks and financial institutions to enable exports to obtain facilities, credit or otherwise, from banks.

What is the export credit discuss its nature and importance?

It is a credit extended by a bank in exporting country (for example, India) to an overseas bank, institution, or government for the purpose of facilitating the import of a variety of listed goods from the exporting country (India) into the overseas country.

What is the importance of export credit in India?

Of the several factors influencing export growth, credit is a very important factor which enables exporters in efficiently executing their export orders. The commercial banks provide short term export finance mainly by way of pre and post-shipment credit.

Which of the following types of guarantee is not offered by ECGC?

ECGC doesn’t cover the risks mentioned below:

• Exchange loss due to fluctuations in exchange rates.
• Failure on the part of the buyer abroad to obtain the import authorization or exchange.
• A default of the exporter or his agent.
• Any loss which arises due to dispute in quality.
• Risk which is inherent in the nature of goods.

When was the Export Credit Guarantee Corporation of India established?

July 30, 1957
Export Credit Guarantee Corporation of India/Founded

What is credit assurance?

Credit insurance covers your loan or credit card payments in the event you become unable to pay due to a financial shock like unemployment, disability or death. By doing so, it may protect your credit. You cannot be forced to buy a lender’s credit insurance.

What covers credit risk of the exporters?

ECGC – An Export Promotion Institution : Provides credit risk covers to Exporters against non payment risks of the overseas buyers / buyer’s country in respect of the exports made. Provides credit Insurance covers to banks against lending risks of exporters. Assessment of buyers for the purpose of underwriting.

How do businesses use export credit?

Export Credit Agencies (ECAs) help finance exports by providing direct credit, credit guarantees, or credit insurances. Direct credit may be provided either to the exporting firm (allowing them to supply goods on credit) or to the importing firm (allowing them to buy goods with cash).