ECGC Ltd. (Formerly Export Credit Guarantee Corporation of India Ltd.), completely owned by Government of India, was set up in 1957 with the objective of encouraging exports from the country by providing Credit Risk Insurance and related services for exports. It operates under the administrative control of Ministry of Commerce & Industry and is managed by a Board of Directors comprising representatives of the Government, Reserve Bank of India, banking, and insurance and exporting community. Over the years it has designed several export credit risk insurance products to suit the requirements of Indian exporters and commercial banks extending export credit.
ECGC is essentially an export promotion organization, seeking to enhance the competitiveness of the Indian exporters by granting them with credit insurance covers. ECGC keeps its premium rates at the optimal level.
What does ECGC do?
- Gives a range of credit risk insurance covers to exporters against loss in export of goods and services
- Grants Export Credit Insurance covers to banks and financial institutions to enable exporters to obtain better facilities from them
- Gives Overseas Investment Insurance to Indian companies investing in joint ventures abroad in the form of equity or loan
How does ECGC help exporters?
- ECGC Offers insurance protection to exporters against payment risks.
- Gives 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 the credit-worthiness of overseas buyers.
- To promote and facilitate the globalization of India’s trade.
- To help Indian exporters in managing their credit risks by providing timely information on the worthiness of the buyers, bankers and the countries.
- To safeguard the Indian exporters against unforeseen losses, which may arise due to the failure of the buyer, bank or problems faced by the country of the buyer by giving cost-effective credit insurance covers in the form of Policy, Factoring and Investment Insurance Services comparable to similar covers available to exporters in other countries.
- To help availability of adequate bank finance to the Indian exporters by giving surety insurance covers for bankers at competitive rates.
- To attain improved performance in terms of profitability, financial and operational efficiency indicators and achieve optimum return on investment.
- To develop world-class expertise in credit insurance within employees and ensure continuous innovation and achieve the highest customer satisfaction by delivering top quality service.
- To train the customers by continuous publicity and effective marketing.