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What is the NIRVIK scheme? Benefits, features, and how to apply
Learn what the NIRVIK scheme is, its eligibility criteria, key benefits, and how Indian exporters can apply to safeguard their international trade payments.
Setting up an export business requires considerable capital investment. Exporters usually look for support from banks and other lending institutions to get additional funds. In the increasingly competitive market, this can become a challenge for aspiring exporters. To make the export process easy for businesses, the government launched the NIRVIK scheme in 2020. In this blog, we will explain what the NIRVIK scheme is, its key benefits and features, and the step-by-step process to apply for it.
What is the NIRVIK scheme?
NIRVIK stands for Niryat Rin Vikas Yojana – a scheme launched to ease the lending process and provide enhanced credit availability to small-scale exporters. This scheme was announced as part of the Union Budget 2020-21. The government appointed the Export Credit Guarantee Corporation of India (ECGC) as the implementing agency for this scheme. It was launched to mitigate the challenges faced by exporters and help drive exports from India.1
Objectives of the NIRVIK scheme
The key objective of the NIRVIK scheme is to ensure high credit disbursement to Indian exporters. Below are some of the other objectives of the NIRVIK scheme:
High insurance cover
The scheme offers a high insurance cover for exporters to support them in business expansion. The NIRVIK scheme provides a credit guarantee of 90% to exporters in case of loss as opposed to 60% credit guarantee offered before the ECGC scheme was introduced.
Reduced policy premium
The scheme provides an opportunity for small-scale exporters to reduce their policy premium and overall cost.
Simplified claim process
The NIRVIK scheme offers a simplified claim settlement procedure that makes it easy for exporters to focus on their business operations.2
Features of the NIRVIK scheme
The NIRVIK scheme was launched to reduce the burden of financing from exporters. Some of the key features of the scheme are:
Insurance premium
The insurance premium is .60% per annum for exporters with a limit of less than INR 80 crore and 0.72% per annum for exporters with a limit above INR 80 crore, reflecting moderated pricing to boost affordability. This structure supports broader exporter participation compared to prior higher rates.
Extended coverage
Coverage extends to 90% on principal and interest for both foreign and rupee export credit, minimizing lender risk. This enables banks to maintain foreign credit interest below 4% and rupee credit below 8%, facilitating cheaper financing for exporters.
Pre and post-shipment
The scheme comprehensively covers pre-shipment credit (for raw materials/working capital) and post-shipment credit (for receivables collection). This holistic protection addresses key stages of export financing, reducing delays and defaults.
Timeline
Originally planned for five years from 2020, no official termination is confirmed as of late 2025; it remains active under ECGC. Sources indicate ongoing implementation without specified sunset, suggesting continuity. Monitor ECGC for 2026 updates amid evolving trade policies.
Nominal interest rate
Small exporters can access credit at competitive rates around 7.6% per annum or lower, enabled by the scheme's risk mitigation. This option aligns with the 8% rupee credit cap, offering relief versus market rates. It particularly benefits ecommerce and small business exporters.3
Eligibility criteria for NIRVIK scheme
To benefit from the NIRVIK scheme, exporters must meet certain eligibility conditions. The key criteria to qualify under this scheme are outlined below:
● The scheme is applicable only to small exporters who meet the prescribed eligibility norms.
● Indian citizens who own and operate an export business can apply for coverage under the scheme.
● Exporters with a bank credit limit of less than INR 80 crore are eligible to avail the scheme at a reduced insurance premium rate.4
Application process for NIRVIK scheme
The NIRVIK scheme has been designed to make export credit more secure and accessible, especially for small-scale exporters. Here’s a walkthrough of the application process:
Step 1: Visit ECGC
The Export Credit Guarantee Corporation of India (ECGC) oversees the NIRVIK scheme.
You can either visit the nearest ECGC branch or apply online through the official ECGC website.
You can either visit the nearest ECGC branch or apply online through the official ECGC website.
Step 2: Complete the application form
Download or collect the application form and fill in all details carefully. Make sure the information provided corresponds exactly with the documents you are submitting. Any discrepancies or unclear scans can cause delays.
Step 3: Verification
Once the application is submitted, ECGC will review the application and documents. They may reach out for clarification or additional details if required.
Step 4: Approval and coverage activation
If the verification is successful, the application will be approved. Your business will then receive the benefits under the NIRVIK scheme, including enhanced credit insurance coverage and lower interest rates on export credit.
Step 5: Stay compliant
To continue enjoying the benefits, pay premiums on time and comply with reporting and procedural requirements. Maintaining compliance ensures uninterrupted coverage and smooth access to scheme advantages.5
Documents required for NIRVIK scheme
An exporter needs to submit the following documents to avail of benefits under the NIRVIK scheme:
1. Business registration documents
Irrespective of the type of business, registration documents are required.
2. GST certificate
Exporters need to obtain a GST certificate from the respective GST department and submit it.
3. Business PAN card
The PAN card in the business’s name is required.
4. Identity proof
Key authorised personnel from the business are required to submit identity proof like an Aadhaar card.
5. Bank loan certificate
In case an exporter has secured a loan from any bank, loan-related documents are required to be submitted for verification.
6. Insurance documents
The exporter needs to submit all insurance-related documents to avail of benefits as a part of the scheme.6
Benefits of the NIRVIK scheme
The NIRVIK scheme is particularly useful for small-scale exporters willing to expand their business in international markets. Here are some of the key benefits of the NIRVIK scheme:
Low credit score
The scheme offers the dual benefit of low credit costs and protection against payment defaults to exporters. As an exporter can get insurance coverage at a low cost, it helps reduce operational costs and offers protection against payment defaults.
Business expansion
The scheme is designed to help small-scale Indian exporters expand their businesses globally.
Quick settlement
The scheme allows quick settlement of claims which helps ensure better liquidity.
Exporter-friendly ecosystem
The scheme helps create an exporter-friendly ecosystem.
Improved competitiveness
The scheme helps small-scale Indian exporters compete with large domestic and international exporters.
The NIRVIK scheme offers multiple benefits including insurance coverage and credit support. This further simplifies the export process, making the industry more accessible for small-scale businesses. Schemes like this and growth of ecommerce has opened many opportunities for MSMEs.7
Working process of NIRVIK scheme
Here is the working process of the NIRVIK scheme:
1. The exporter approaches a bank for packing credit (pre-shipment loan) or post-shipment credit.
2. The bank assesses the exporter’s eligibility, and the loan is sanctioned under the ECGC cover provided through the NIRVIK scheme.
3. Once the loan is sanctioned, ECGC provides a credit insurance policy to the lending bank.
4. This policy covers up to 90% of the principal and interest in case the exporter defaults.
5. After the ECGC policy is activated, the exporter receives the loan amount from the bank for business activities like manufacturing, sourcing, packaging, or shipping goods.
6. If the foreign buyer makes the payment on time, the exporter repays the loan to the bank as usual. If the buyer fails to pay, then ECGC steps in.8
Conclusion
The NIRVIK Scheme (Niryat Rin Vikas Yojana) represents a major step toward strengthening India’s export ecosystem by ensuring easy access to affordable credit and robust risk protection for small and medium exporters. By offering 90% insurance coverage, simplified claim settlements, and lower policy premiums, the scheme builds confidence among both banks and exporters, encouraging greater participation in global trade.
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Frequently Asked Questions
1. Who introduced the NIRVIK scheme?
Finance Minister Nirmala Sitharaman introduced the NIRVIK scheme as a part of the Union Budget 2020-21.
2. Which government authority is responsible for the NIRVIK scheme?
Export Credit Guarantee Corporation of India (ECGC) is responsible for the implementation of the NIRVIK scheme.
3. Is the NIRVIK scheme only available for exporters?
Yes. the NIRVIK scheme has been launched to ensure the easy availability of credit to small-scale Indian exporters.
4. What is the tenure of the NIRVIK scheme?
The NIRVIK Scheme was introduced in 2020 with an initial duration of five years. As of late 2025, the government has not issued any official notification regarding its discontinuation, and the scheme is therefore expected to remain in operation.
5. What sectors can benefit from the NIRVIK Scheme?
Several SMEs, MSMEs, and the Gems, Jewellery, and Diamonds (GJD) sectors benefit from the NIRVIK Scheme.9
6. How does the NIRVIK Scheme reduce business loan interest rates?
The scheme offers a government-backed assurance on export credit, minimizing the risk for banks and financial institutions. As a result, lenders can extend business loans at reduced interest rates, making financing more accessible and cost-effective for exporters.
7. What is the NIRVIK scheme of ECGC?
The NIRVIK scheme, implemented through the Export Credit Guarantee Corporation of India (ECGC), aims to improve credit access for small-scale exporters and simplify the process of obtaining export-related loans.
8. What is the reason to register for NIRVIK scheme?
Under the NIRVIK scheme, exporters can access affordable business loans with enhanced credit insurance. Accounts with limits up to ₹80 crore pay a 0.60% annual insurance premium, while those above ₹80 crore pay 0.80%. The scheme offers up to 90% coverage on principal and interest, along with lower Forex rates ranging from 4% to 8%.
Published on December 29, 2022.
Updated on December 17, 2025.
Sources:
1. https://cleartax.in/s/nirvik-scheme
2. https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=1601493®=3&lang=2
3. https://cleartax.in/s/nirvik-scheme
4. https://www.godigit.com/government-schemes/what-is-nirvik-scheme
5. https://flexiloans.com/blog/nirvik-scheme/
6. https://www.godigit.com/government-schemes/what-is-nirvik-scheme
7. https://cleartax.in/s/nirvik-scheme
8. https://flexiloans.com/blog/nirvik-scheme/
9. https://www.godigit.com/government-schemes/what-is-nirvik-scheme
Updated on December 17, 2025.
Sources:
1. https://cleartax.in/s/nirvik-scheme
2. https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=1601493®=3&lang=2
3. https://cleartax.in/s/nirvik-scheme
4. https://www.godigit.com/government-schemes/what-is-nirvik-scheme
5. https://flexiloans.com/blog/nirvik-scheme/
6. https://www.godigit.com/government-schemes/what-is-nirvik-scheme
7. https://cleartax.in/s/nirvik-scheme
8. https://flexiloans.com/blog/nirvik-scheme/
9. https://www.godigit.com/government-schemes/what-is-nirvik-scheme
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