There are lots of special and different kind of major government schemes introduced by ECGC who have bundle of covers where foreign ventures like to invest their money.
In this blog we will discuss about the three ECGC Schemes or we can say Export credit guarantee corporation Schemes
Salient Features of ECGC Scheme UPSC
There are three types of ECGC schemes or Export credit guarantee corporation Schemes
- Transfer guarantee
- Overseas investment insurance
- Exchange fluctuation risk cover
Transfer guarantee: In other words transfer guarantee is a program that offers students from a community college guaranteed admissions to several colleges and universities. The writing of a TAG contract enables qualified students to be guaranteed admissions one year prior to transfer.
Overseas investment insurance: In this scheme , it also provide some sort of protection for Indian Investments abroad. If you’re planning to take some type of loan to invest in your upcoming business or anything it will be eligible under investment insurance.
The investment should be under cash or any other Indian currency that is required in their rules and regulations. There is a specific period of time when your insurance will get expired that is 15 years after the first start of your amount.
The Exchange Fluctuation Risk: In this you have chances of fluctuation risk of capital goods. Exchange Fluctuation Risk has a period of 12 months to 15 years but if bychance your bid gets unsuccessful ,75 percent of the premium paid by the contractor is refunded to him. There are suitable credit insurance cover which can be granted independently also in which case premium will be loaded by 20%.
Benefits of ECGC Scheme UPSC
If you’re investing in something like loan and in bank then there is a safer side and insurance that keeps you stress free because inside you , you know that your money is totally safe.
In Overseas investment insurance: The risk of war ad other benefits/loss are covered under the scheme so that the invester know that where he is keeping his money and getting a good insurance from the same.
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The rate of premium is 40 paise that is 100ruppees per year. In there policy it shows that Ten percent of the total premium payable and premium for the first two years should be paid at the time of issue of the Policy, after that you can pay in such a manner that your policy says.
You should be upto date with completed proposal form.
These schemes are highly work as 78percent of risk, so the targeted audience is specific audience that is banks, investers who like to invest in big projects in abroad and other superpower countries.
Hope after reading this blog on Major Government Schemes Introduced by ECGC, you have understood the ECGC Schemes upsc