Niryat Rin Vikas Yojana (NIRVIK Scheme) Small Exporters [Application Form, Eligibility]
Trade and commerce are two important pillars on which the Indian economy rests. There are small, medium and large exporters in which, which pool in revenue in central government’s coffers. But the market ups and downs pave the path for financial unsteadiness for the small exporters. The central government has announced a new scheme, Niryat Rin Vikas Yojana that offers financial security to such exporters and banks that offer them loans. In this article, you will get a detailed insight about the features of this new project. Along with this, you will read about the eligibility and documents necessary for application.
Launch details of the scheme
|Name of the scheme||Niryat Rin Vikas Yojana or NIRVIK scheme|
|Launched by||Narendra Modi|
|Announced by||Piyush Goyal|
|Date of announcement||September 2019|
|Official launch date||Soon|
|Target beneficiaries||Small exporters|
|Supervised by||Export Credit Guarantee Corporation or ECGC|
Key features of the NIRVIK scheme
- Growth of the trade sector – The primary motive of the central government is to offer the much-needed boost to the export and business sectors. Estimates suggest with the implementation of this project, export credit will shoot up by 30%.
- Easy loan application – Under this scheme, exporters will also get the opportunity to apply for loan from financial institutions. The scheme also ensures that the business credit application mode will be simplified. The banks will also be able to distribute the loans easily.
- Rate of interest on the loans – If any small exporter applies for a business loan under this scheme, then he/she will be charged at 7.6% interest rate on a yearly basis.
- Coverage principal and interest amounts – With the launch of this new central government scheme, small exporters will be entitled to receive a whopping 90% coverage, both on the principal and the interest sums from the central authority.
- Refunding bank losses – An important statement sheds light on the fact that banks will no longer suffer due to non-payment of loans. It will be the responsibility of the ECGC to refund the banks in case an exporter fails to repay the credit amount.
- Reduction in insurance premium rates – It is mandatory for small and big exporters to opt for insurance policies. As per the guidelines of the new scheme, the yearly insurance premium has been slashed from 0.72% to 0.60%. This facility will be given to a specific section of exporters only.
- Tenure of the scheme – The respective minister has declared than once the scheme is officially launched, it will run for five successive years.
- Bank refund span – Sometimes, the small exporters face financial losses, and fail to repay the bank loan. The scheme ensure the banks that they will get 50% of the credited amount if they claim the damages. The sum will be transferred to the bank within 30 working days.
- Encourage banks to give loans – As the scheme safeguards the banks as well, these financial institutions will not feel the urge to turn down the loan application, made by a small exporter.
Eligibility to apply for the benefits
- Small exporters only – The scheme details highlight that only small exporters will be permitted to apply and acquire the perks of this new central-sponsored scheme.
- Business owned by Indians – To attain the benefits of this scheme, the business must be owned by an Indian citizen.
- Bank limit requirement – It has been mentioned in the scheme details that the low premium rate will only be applicable for the exporter, who have bank account limits that do not cross the Rs. 80 crore mark.
Documents necessary for application
- Business registration documents – No matter what type of export agency it is, the owner needs to product all official documents, which highlight that it is a legitimate business house.
- GST certificate – All small exporters must have the necessary registration documents, which are issued by the GST department.
- Business PAN Card – If the exporters do not have a PAN card that has been issued in the name of the organization, they will not be able to apply for the scheme benefits.
- Identity proof of the owners – Whether the company is owned by a single person or is a partnership firm, the identification document, like the Aadhar card must be submitted for checking the authenticity of the claimants.
- Bank loan certificates – In case the applicants had applied and received a bank loan, then all loan-related documents must be submitted for scrutiny.
- Insurance documents – It is mandatory for the interested small exporters to submit all insurance policy related papers, if they desire to claim the benefits.
How can exporters apply for the scheme?
The NIRVIK scheme has only been announced by the respective ministry. The date of its actual launch has not been mentioned yet. So, nothing is known about the way in which the interested small exporters can apply for the benefits of this scheme. Once the central government makes any new announcements, you will read about the updates on our site.
The scheme will assist in safeguarding the interest of the small exporters. It will encourage them to take more risks, knowing that the central government will support them in case if financial crisis. These measures will promote the trade and commerce sectors in the country. Thus, the overall financial revenue of the nation will also increase.
Other links –