What are the Main Functions of Export Credit and Guarantee Corporation

(ECGC) of India?

The Export Credit and Guarantee Corporation were set up as a Government undertaking
in 1964 on the recommendation of a study group on export finance. It works on ‘no profit
no loss’ basis.

The main functions of the corporation are to provide insurance to export risks and to
finance exports. E.C.G.C. helps exporters by furnishing guarantees to the financial banks
in order to enable them to provide sufficient credit facilities.

It further insures the exporter’s credit risks against both commercial and political
conditions and guarantees payment to the exporters. The corporation provides various
types of insurance covers to suit the varying needs of customers.

Functions of ECGC
 Provides a range of credit risk insurance covers to exportersagainst loss in export
of goods and services
 Offers Export Credit Insurance covers to banks and financialinstitutions to enable
exporters to obtain better facilities fromthem
 Provides Overseas Investment Insurance to Indian
companies investing in joint ventures abroad in the form of equity or loan
Objectives of ECGC

 To encourage and facilitate globalization of India’s trade

 To assist Indian exporters in managing their credit risks by providing timely
information on worthiness of the buyers,bankers and the countries.
 To protect the Indian exporters against unforeseen losses which may arise due to
failure of the buyer, bank or problems face by the country of the buyer by
providing cost effecting credit insurance covers.
 To facilitate availability of adequate bank finance to the Indian exporters by
providing surety insurance covers for bankers at competitive rates
 To develop world class expertise in credit insurance among employees and ensure
continuous innovation and achieve the highest customer satisfaction by delivering
top qualityservices
 To educate the customers by continuous publicity and effective marketing