I want to know the eligibility and the duration of Export Credit Insurance Packing Credit of Export Credit Guarantee Corporation Ltd (ECGC)?

Export Credit Guarantee Corporation Ltd (ECGC) provide Export Credit Insurance Packing Credit.

Export Credit Insurance Packing Credit

Eligibility:

A bank or a financial institution authorized to deal in foreign exchange can obtain the Individual Packing Credit Cover for each of its exporter clients who has been classified as a standard asset and whose CR is acceptable to ECGC.

Period Of Cover: 12 months

Protection offered:

Against losses that may be incurred in extending packing credit advances due to protracted default or insolvency of the exporter-client.

Percentage Of Cover: 66-2/3%

Premium:

12 paise per Rs.100 p.m. on the highest amount outstanding on any day during the month.

Maximum liability:

66-2/3% of the Packing Credit Limit sanctioned to the account being covered.

Important obligations of the bank:

Monthly declaration of advances granted and payment of premium before 10th of the 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 sharing of recovery