Export Finance (EF)
Export Credit Insurance for Bank
Export Credit Insurance For Banks Export Finance (ECIB -EF)
Any bank authorized to deal in foreign exchange can obtain the Export Finance Cover in respect of its exporter-client who has been classified as a standard asset and whose Credit Rating is acceptable to ECGC.
Period Of Cover:
Advances against incentives such as cash assistance, duty drawback, etc., receivable at post-shipment stage.
Against losses that may be incurred in extending post-shipment advances against incentives due to protracted default or insolvency of the exporter-client.
Percentage Of Cover:
6 paise per Rs.100 p.m. on the highest amount outstanding on any day during the month.
75% of the post-shipment limit sanctioned to the account.
Important Obligations Of The Bank:
Monthly declaration of advances granted and payment of premium before 10th of succeeding month. Approval of the Corporation for extension of due date beyond 360 days from due date to be obtained. Default to be reported within 4 months from due date or extended due date of advances, if not recovered, filing of claim within 6 months of the Report of Default. Recovery action after payment of claim and the subsequent sharing of recovery.
Banks can take the cover selectively. Banks having ECIB-WTPS are eligible for concessional premium rate and higher percentage of cover as applicable.
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