After being actively exploited by the introduction of GST, i.e. Goods and Services Tax which was announced by the government in power in 2017. Now, to ease the trouble of people in business, the Ministry of Commerce & Industry through Export Credit Guarantee Corporation (ECGC) has introduced a new Export Credit Insurance Scheme (ECIS) called NIRVIK Scheme
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Niryat Rin Vikas Yojana
The Niryat Rin Vikas Yojana made available easy loan to the big businessmen and exporters. Also under the NIRVIK Scheme high-interest rate will be provided. Keeping in mind the rights of the businessman carrying out the export business and supporting India’s GDP this scheme was announced by the Finance Minister Nirmala Sitharaman on 14 September 2019 in New Delhi.
Aim through NIRVIK Scheme
The main aim and motive through the Niryat Rin Vikas (NIRVIK Scheme) Yojana were to make loan readily available to the businessmen. Moreover, higher interest rates will be provided to all the businessmen taking loans. The government has taken this initiative to preserve the rights of the businessmen and also increase the credit supply of the banks. Under the NIRVIK Scheme Government will provide insurance covers to the businessman and at the time of Claim Government will provide 90% of the principal amount.
Overview of NIRVIK Niryat Rin Vikas Yojana
|Scheme Name||Niryat Rin Vikas Yojana|
|Launched By||Central Govt.|
|Department||Goods & Services Tax|
|Start Date of Scheme||Available Soon|
|Mode of Application||Online|
|Official Website||Available Soon|
Benefits Of NIRVIK Scheme
The government will provide a number of Benefits to Businessmen under the Niryat Rin Vikas Yojana:-
- It will, first of all, enhance accessibility and affordability of credit for exporters.
- The scheme will also help exporters to expand their business.
- Explanation of business through the exporters will result in an increase in competition.
- The scheme will also provide ease to carry out day to day activities related to export.
- The scheme will help provide liquidity to the assets by providing quick insurance cover to the business.
- The insurance cover will provide additional comfort to banks.
- Adequate working capital will also be hence provided by the scheme.
- Due to reduced insurance premium rates there will be 30% growth in export credit and 20% growth every year.
- The scheme is going to cover Rs. 3 lakh crore of loans.
Insurance Covers In NIRVIK Scheme
For small people in the business having an outstanding limit of less than Rs, Eighty crores insurance premium rates will be reduced to 0.6% from 0.72%. Also for the beneficiaries, those which will be selected under the NIRVIK scheme, almost 90% insurance cover will be provided for them. And 50% of the amount for the claim will be given in the first 30 days after the complaint is filed regarding the lost by any means. But to be eligible for the insurance cover the exporter will have to produce proof of the loss occurred which will be issued by the concerned Bank authorities after a full inspection of the site.
Registration Process in NIRVIK Scheme
The Niryat Rin Vikas Yojana is a fresh new scheme which was announced by Mr. Piyush Goyal in a Press Conference just a few days back. He also had addressed the press that the scheme will be sent to the cabinet for approval. Thus, many details including the eligibility, application and registration process in respect to the scheme are yet to be announced by the concerned authorities. As soon as the registration and application process are disclosed by the cabinet of commercial affairs we will update you through this portal.