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Export Credit Guarantee Corporation of India (ECGC): Everything you need to know

Export Credit Guarantee Corporation of India (ECGC) is a financial institution under the Ministry of Commerce and Industry, Government of India. Learn more about it in this blog.

To promote exports from India and safeguard exporters against the risk of non-payment by importers, the Export Credit Guarantee Corporation of India (ECGC) was set up by the Ministry of Commerce and Industry, Government of India. It offers credit risk management services, foreign exchange risk management services, and business information services.

What is Export Credit Guarantee Corporation?

Export Credit Guarantee Corporation of India (ECGC) is a financial institution under the Ministry of Commerce and Industry, Government of India, that provides credit insurance to Indian exporters. Established in 1957, ECGC offers various types of insurance policies such as pre-shipment credit insurance, post-shipment credit insurance, and specific shipment insurance to exporters¹.

What are the functions of ECGC?

The Export Credit Guarantee Corporation (ECGC) of India plays an important role in promoting exports from India. Some of the key functions include²:

1. Credit insurance to exporters to protect them against the risk of non-payment by importers.
2. Guarantee to banks and financial institutions that lend to exporters.
3. Foreign exchange risk management services to help exporters manage currency fluctuations.

Types of policies, schemes, and guarantees offered by ECGC

Here are the three main types of services offered by ECGC³:

Standard policy:

This policy is applicable to cover risks on goods exported on short-term credit (not exceeding 180 days).

Export credit insurance:

ECGC offers various export credit insurance policies to protect exporters against non-payment by importers. This includes pre-shipment credit insurance, post-shipment credit insurance, and specific shipment insurance.

Export finance guarantee:

It provides export finance guarantees to banks and financial institutions that lend to exporters. The guarantees cover risks such as non-repayment of loans, default by the exporter, and political risks.

Bonding and guarantees:

ECGC offers bonding and guarantee services to exporters to help them participate in global tenders and execute contracts. The services include bid bond guarantees, performance guarantees, and advance payment guarantees.

ECGC’s services and insurance policies have been instrumental in supporting India’s export sector and helping businesses expand into new markets. With such schemes provides by trade organizations and e-commerce exports program, Indian exporters can sell across the world in an easy and seamless way.

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Frequently Asked Questions

What is Export Credit Guarantee Corporation?

ECGC is a government owned export credit agency of India. It is under the ownership of the Ministry of Commerce and Industry, Government of India, and is headquartered in Mumbai, Maharashtra.

What is the percentage of cover provided by ECGC?

The percentage of coverage provided by ECGC varies, depending on the policy and risk assessment.

Published on July 12, 2023.

Sources:
1. https://www.ecgc.in/home.aspx
2. https://www.business-standard.com/about/what-is-ecgc
3. https://www.ecgc.in/Products.aspx
4. https://www.ecgc.in/Limitation.aspx

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*Map not to scale. The map has been used for design and representational purpose only, it does not depict the geographical boundaries of the country. These do not conform to the external boundaries of India recognized by the Survey of India.

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Export Credit Guarantee Corporation of India (ECGC): Everything you need to know

What is Export Credit Guarantee Corporation?

What are the functions of ECGC?

Types of policies, schemes, and guarantees offered by ECGC

Standard policy:

Export credit insurance:

Export finance guarantee:

Bonding and guarantees:

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Frequently Asked Questions

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