Export Credit Corporation of India(ECGC)

Export credit guarantee corporation of India (ECGC) is established by Government of India to strengthen. to strengthen and boost the export. of the country by covering the credit risk. and to promote the exports of our country. ECGC is the largest credit insurer of the world in terms of coverage of national exports. It is managed by a board of directors, Hamming Expertise in the area of insurance banking management. and comprises of representatives from GOI, RBI, banking insurance and exporting community of the nation.

ECGC has designed its policies keeping in mind the interests of various section of the exporters, such as small exporters, large scale exporters, IT services, exporters, occasional exporters. And has one of the largest range of products and services to enable the exporter to choose the best possible. It offers various policies based on risk perception, and usually the premium is less in the case of lower risk transactions and countries.

Functions of ECGC ;

 1. ECGC provides. a wide range of credit risk insurance covers and products to exporters so as to enable them against the losses in the export of goods and services in international transactions.

 2. ECGC helps the exporters in financing their trade transactions by offering guarantees to commercial banks and financial institutions, particularly in cases where exporters have risky payment options and are having problems in pre shipment and post shipment finances for export transactions.

3. ECGC also provides overseas investment insurance to Indian companies, which are investing in joint ventures abroad in the form of equity or loan, thereby covering their exposure to rest, enable them to make a foray in the international markets.

Specific functions of ECGC :

-ECGC helps exporters by offering the insurance coverage against the payment. risks. where many Indian exporters are for the first time, pouring into international trade.

-ECGC has first hand information in export related activities, particularly in areas of potential risk associated with countries. Modo and mode of payment in a globally challenging trade rejig and offers guidance to exporters to help them out to avoid risk in such deals.

-ECGC with its networks. with other credit risk agencies in the world published. the information on risk perception of different countries with its own credit ratings and helps the exporters to avoid them.

-ECGC acts as facilitators in obtaining the export finance from banks and financial institutions through various guarantees to banks and financial institutions.

-ECGC assists exporters In recovering bad debts from defaulters by helping them out to proceed legal and diplomatic channels.

ECGC maintains database of domestic and international exporters and importers, and shares it with other credit risk insurance agencies provides information on the creditworthiness of overseas and domestic traders.

ECGC offers a wide range of products And services to exporters, including customized products to meet their requirement and needs for the export credit insurance.

ECGC and its structure;