Manmade and Technical Textiles Export Promotion Council (MATEXIL)

ECGC's new insurance scheme to cover up to 90% export credit risk for small exporters

Circular No.ES/66/2022-23                                                    27th July, 2022    


To: Members of the Council   


Sub: ECGC's new insurance scheme to cover up to 90% export credit risk for small exporters  

Dear Member,        

We are glad to inform you that the Export Credit Guarantee Corporation (ECGC) has introduced a new enhanced insurance scheme to cover up to 90% of export credit risk for small exporters under the Export Credit Insurance for Banks Whole Turnover Packaging Credit and Post Shipment (ECIB- WTPC & PS).  


In this regard a Press Release dated 26.7.2022 has been issued by the Ministry of Commerce & Industry.   

This new scheme is expected to benefit many small-scale exporters availing export credit with banks, which hold the ECGC WT-ECIB covers and also, enable small exporters to explore new markets / buyers and diversify their existing product portfolio competitively. 


ECGC is of the view that this cover may –  

  • Play a game changing role. 
  • Also, bring up the percentage of accounts with up to Rs. 20 crore, thereby lending further stability to ECGC portfolio. 
By giving 90% cover to banks, ECGC expects –  
  • Small companies to get export credit from banks, benefiting these industries greatly.  
  • Banks will be able to provide more concessions.  
  • The net effect will be beneficial to exporters, involving reduction in interest rate. 

Mechanism of ECGC's new insurance scheme

  • This enhanced cover shall be available for manufacturer-exporters availing fund-based export credit working capital limit up to ₹ 20 crore 
  • (i.e., total Packaging Credit and Post Shipment limit per exporter/exporter-group) excluding the Gems, Jewellery & Diamond sector and merchant exporters/traders. 
  • This new scheme will enable the banks holding ECGC’s WT-ECIB cover to explore the possibility of reducing interest rates further so that all the stakeholders are benefitted.  
  • The enhanced cover percentage shall be made available to State Bank of India as per the previous year’s premium rate in view of its favourable claim premium ratio. However, for other Banks, there may be a moderate increase in the prevailing premium rates. 


Handholding support by ECGC to exporters - 

  • ECGC had extended support to exports amounting to Rs.6.18 lakh crore in the last FY 2021-22. 
  • As on 31.3.2022, more than 6,700 distinct exporters were benefitted by the direct cover issued to exporters 

  • More than 9,000 distinct exporters benefitted under the Export Credit Insurance for Banks (ECIB). 

  • Around 96% of these are small exporters.    

Members may please make a note of the above and kindly avail the benefit of this new EGCG Insurance Scheme to avoid risk of non-payment by the buyer. 


Thanking you,                        


Yours faithfully,