Objective, Role & Function of Export Credit Guarantee Corporation (ECGC)
Objective and Function of ECGC (Export Credit Guarantee Corporation): This article focuses on the Objective, Role & Function of Export Credit Guarantee Corporation (ECGC). You can also learn here the full form of ECGC, History of ECGC, and ECGC definition. Here, I will also share the information about the role of ECGC, objectives of the ECGC, and the ECGC’s functions. If you want to know All Banks in India then you can click on given link to know more because I have already written an article on the List of all banks in India. Let’s read the full article to get more information about the ECGC. Objective and Function of ECGC
What is the full form of ECGC?: ECGC Full form
The full form of ECGC is the Export Credit Guarantee Corporation.
History of ECGC: ECGC History
Objective and Function of ECGC:
Established: 30th July 1957
Chairman: Click here
Ambition: To Provide credit insurance
Working of ECGC:
- Provides a range of credit risk insurance covers to exporters against loss in export of goods and services.
- Offers export credit insurance covers to banks and financial institution to enable exporters to obtain better facility
- Provides overseas investment insurance to Indian companies investing in joint ventures abroad in the form of equity or, loan.
Role of ECGC:
Objective and Function of ECGC: ECGC is the fifth largest credit insurer of the world in terms of coverage of national exports. The present paid-up capital of the company is Rs.800 crores and authorized capital Rs.1000 crores.
The types of insurance protection provided by ECGC include:
- A range of credit risk insurance covers to exporters against loss in export of goods and services
- Guarantees to banks and financial institutions to enable exporters to obtain better facilities from them
- Overseas Investment Insurance to Indian companies investing in joint ventures abroad in the form of equity or loan.
Objective and Function of ECGC
The main objectives of the ECGC:
- To protect exporters o-f India, from credit risks, arising from commercial and political reasons, To protect banks in India, from risks of default or protracted delay in payment by the exporters, in respect of export finance, and
- To encourage exporters to search out new markets and new importers abroad, by the ECGC underwriting the major part of the credit risks. Objective and Function of ECGC
Functions of Export Credit and Guarantee Corporation of India (ECGC):
- Standard policies which protect the exporters against overseas credit risks.
- Services and construction work policies.
- Financial guarantees.
- Special policies.
What does ECGC do?
- Offers insurance protection to exporters against payment risks
- Provides guidance in export-related activities
- Makes available information on different countries with its own credit ratings
- Makes it easy to obtain export finance from banks/financial institutions
- Assists exporters in recovering bad debts
- Provides information on credit-worthiness of overseas buyers
- Provides names and addresses of prospective buyers in the overseas markets
Major Products and Services offered by ECGC include:
- Credit Insurance Policies
SCR or Standard Policy
Small Exporters Policy
Specific Shipment Policy (Short Term)
Specific Policy for Supply Contract
Insurance Cover for Buyer’s Credit and Line of Credit
Construction Works Policy
- Maturity Factoring
- Guarantees to Banks
- Export Finance Guarantee
- Packing Credit Guarantee
- Export Production Finance Guarantee
- Post-Shipment Guarantee
- Export Performance Guarantee
- Export Finance (Overseas Lending) Guarantee
4. Special Schemes
- Transfer Guarantee
- Overseas Investment Insurance
- Exchange Fluctuations Risk Cover