ECGC Full Form
The Full Form of ECGC is Export Credit Guarantee Corporation of India Limited. ECGC is a company that is controlled by the Ministry of Commerce, Government of India and is based in Mumbai, Maharashtra. The main aim of this company is to protect exporters of India, to protect banks in India from credit risks. It also encourages exporters so that they can search out for new markets and new importers.
Establishment of ECGC:
- In July 1957: The Government of India has set up Export Risks Insurance Corporation (ERIC).
- In July 1964: ERIC was transformed to Export Credit and Guarantee Corporation Limited (ECGC).
- In July 1983: ECGC was named as Export Credit Guarantee Corporation of India.
- With effect from 8 August 2014: EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED named has been changed to ECGC Limited.
ECGC Full Form
Overview of Export Credit Guarantee Corporation:
|Tagline of ECGC:||You focus on exports. We cover the risks.|
|Type||State-owned enterprise, Public|
|Founded||30 July 1957|
|Headquarters||Mumbai, Maharashtra, India|
|Key people||Geetha Muralidhar (Chairman & MD)|
|Products||Export Credit Insurance|
|ECGC Website||Official Website|
What is ECGC (Export Credit Guarantee Corporation)?
Meaning of ECGC: ECGC is basically known as an export promotion organization that helps in improving the competitiveness of the Indian exports. ECGC helps them by providing credit insurance covers, by introducing various export credit insurance schemes and related export services.
Various export credit insurance schemes that are introduced by ECGC has helped many commercial banks to meet up their requirements. These schemes help in providing timely and adequate export credit facilities to the exporters. Moreover, ECGC premium rates are always kept at optimal level.
Also Know About: What is the full form of DLF
How does ECGC protect exporters?
- Exporters that have faced loss in export of goods and services, ECGC provides credit risk insurance covers to them.
- To enable exporters, ECGC offers guarantees to various financial and banking institutions, so that they can obtain better facilities.
- ECGC also provides Overseas Investment Insurance in the form of equity or loan and advances to Indian companies that are investing in joint ventures abroad.
What is the need for Export Credit Insurance?
Export Credit Insurance (ECI) reduces the payment risks for those that are doing business internationally means if in case the foreign buyer is not able to pay to the exporter, then it gives confidence or certainty that payment of exporter will then be done. ECI is offered in two ways i.e. it will be offered either on a single-buyer basis or on a portfolio multi-buyer basis. The ofference is made for short-term (up to one year) and medium-term (one to five years) repayment periods.
Where Can I Get Export Credit Insurance?
Export Credit Insurance Policies are provided by private commercial risk insurance companies and Export-Import Bank of the United States (EXIM). These agencies works is to help in financing the export of U.S. goods and services to international markets.
The benefit of Export Credit Insurance is that it boosts sales with existing customers, it transfers the burden of credit management, it expands into new markets and realize tax benefits.
Read about: RTI Full Form in English/Hindi
Facilities by ECGC
- It helps in providing advice or information that aimed at resolving problems in export-related activities.
- It assists the exporter that helps in recovering their bad debt.
- It makes export finance from banks/financial institutions in an easy way to obtain.
- It offers insurance protection to exporters.
Procedure carried out with ECGC to cover insurance:
- First of all, a purchase order is to be issued to the seller (exporter) by the buyer. The purchase order contains complete details about the buyer.
- Then the seller speaks about the proposal to ECGC in order to get approval on the buyer and the amount that is to be shipped.
- ECGC, then with the help of overseas network gave complete details to the seller (exporter) regarding the creditworthiness extent of the buyer.
- ECGC collects some amount on the export and issues insurance policy.
We hope that the information provided above by the team of recruitmentresult.com helps you in understanding the meaning of ECGC and knowing ECGC Full Form, functions and facilities provided by Export Credit Guarantee Corporation of India Limited etc in an easy way. You can also bookmark our site recruitmentresult.com for more similar updates.
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