The Finance Minister of our country that is Nirmala Sitharaman has announced the NIRVIK Scheme in the Union Budget 2020-21 in Parliament. Today in this article, we will share with you important aspects of the scheme that is the NIRVIK Scheme 2020. NIRVIK stands for Niryat Rin Vikas Yojana. In the article, we will share important aspects of the scheme such as the eligibility criteria, implementation process and all of the other details of the scheme.
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About NIRVIK Scheme
The NIRVIK Scheme 2020 will provide high insurance cover for exporters. It will also reduce the premium for small exporters. The NIRVIK Scheme 2020 will help in achieving higher export credit disbursement. Through this new scheme NIRVIK, a high insurance cover will be provided. Also, a reduction in premium for small exporters and also simplified procedures for the claim, settlement, and other things will be provided. All this was said by the Finance Minister while presenting the Budget 2020-21.
Details Of NIRVIK Scheme
|Name||NIRVIK Scheme 2020|
|Launched by||Finance Minister|
|Objective||Providing high insurance cover for exporters|
Implementation Of NIRVIK Scheme
The Niryat Rin Vikas Yojana is being prepared by the Commerce and Industry Ministry. Under the Scheme, the insurance guarantee could cover up to 90% of the principal and interest. The scheme will provide different insurance covers to the exporters. Commerce and Industry Ministry has also proposed to subsidize the premium under the Scheme that has to be paid by exporters of certain key sectors. The scheme will help all of the exporters to take the loans for their preparation of goods and services without any financial weakness.
Export Credit Insurance Scheme
The Export Credit Guarantee Corporation (ECGC) cover will also provide additional comfort to banks. It currently provides credit guarantee of up to 60 per cent loss. The credit rating of the borrower is enhanced to the AA-rated account. The enhanced cover will ensure that Foreign and Rupee export credit interest rates will be below 4%and 8% respectively for exporters. Under ECIS, insurance cover percentage has also been enhanced to 90% from the present average of 60% for both principal and interest.
To increase the practices of exports in our country our finance minister has been taking various steps to develop the process of entrepreneurship. Also, institutional mechanisms are being created for developing each district as an export hub and proposed allocation of ₹27,300 crores for industry and commerce in 2020-21. These export hubs will be helpful for young entrepreneurs in our country. Separate portal for the process of entrepreneurship development will be undertaken by the Finance Minister.
Application Process Of NIRVIK Scheme
The scheme will be launched as soon as possible but the detailed registration process of the schemes is not available for the common public. As soon as the detailed registration procedures are open for the common public, we will inform you everything through this website.