Sign Up

Have an account? Sign In Now

Sign In

Forgot Password?

Don't have account, Sign Up Here

Forgot Password

Lost your password? Please enter your email address. You will receive a link and will create a new password via email.

Have an account? Sign In Now

Please type your username.

Please type your E-Mail.

Please choose the appropriate section so the question can be searched easily.

Please choose suitable Keywords Ex: question, poll.

Please choose an appropriate title for the question so it can be answered easily.

Sign InSign Up

IGNOU Answers

IGNOU Answers Logo IGNOU Answers Logo
Search
Ask A Question

Mobile menu

Close
Ask a Question
  • Home
  • Categories
    • All Questions
    • Commerce
    • Computer Science
    • Economics
    • English
    • General Queries
    • Political Science
    • Public Administration
    • Psychology
    • Sociology
    • Others
  • Tags
  • Users
  • Contact Us
Home/ Questions/Q 4708
In Process
User
  • 0
User
Asked: September 8, 20212021-09-08T11:58:34+05:30 2021-09-08T11:58:34+05:30

Comment on the”ECGC enhances credit worthiness of not only export business but also of exporters.” statement.

  • 0
Comment on the”ECGC enhances credit worthiness of not only export business but also of exporters.” statement.
  • 1 1 Answer
  • 0 Followers
  • 0
  • Share
    Share
    • Share on Facebook
    • Share on Twitter
    • Share on LinkedIn
    • Share on WhatsApp

1 Answer

  • Voted
  • Oldest
  • Recent
  1. User
    2021-09-08T12:02:10+05:30Added an answer on September 8, 2021 at 12:02 pm

    The Export Credit Guarantee Corporation, (ECGC) has designed a scheme of Guarantees to Banks with a view to enhancing the credit worthiness of the exporter so that they would be able to secure better and large facilities from their bankers. To meet the varying needs of exporters. The Corporation has evolved the following types of Guarantees:
    1.Packing Credit Guarantee;
    2.Export Production Finance Guarantee;
    3.Post-shipment Export Credit Guarantee;
    4.Export Finance Guarantee;
    5.Export Performance Guarantee;
    6.Export Finance (Overseas lending) Guarantee.
    1.Packing Credit Guarantee: Any loan given to an exporter for the manufacture processing, purchasing or packing of goods meant for export against a firm order or letter of credit qualifies for packing Credit Guarantee. The Guarantee is issued for a period of 12 months against a proposal made for the purpose and covers all the advances that may be made by the banks during the period to a given exporter within an approved limit. To banks, which undertake to obtain cover for packing credit advances, granted to all its customers on an all India basis.
    2. Export Production Finance Guarantee: The purpose of this guarantee is to enable banks to sanction advances at the pre-shipment stage to the full extent of cost of production when it exceeds the FOB value of the contract/order, the difference representing incentives receivable. The extent of cover and the premium rate are the same as packing Credit Guarantee. Banks having WTPCG are eligible for concessionary premium rate and higher percentage cover.
    3. Post-Shipment Export Credit Guarantee: Post-shipment finance given to exporters by banks through purchase, negotiations or discount of export bills or advances against such bills qualifies for the guarantee. It is necessary however, that the exporter concerned should hold suitable policy of ECGC to cover the overseas Credit risks.
    4. Export Finance Guarantee: This guarantee covers post-shipment advance granted by banks to exporters against export incentives receivable in the form of duty drawback, etc. The Premium rate for this Guarantee is 7 paise per Rs. 100 per month and the cover is 75 per cent. Banks having WTPSG are eligible for concessional rate of premium and higher percentage of cover.
    5. Export Performance Guarantee: Exporters are often called upon to execute bonds duly guaranteed by Indian banks at various stages of export business. An exporter who desires to quote for a foreign tender may have to furnish a bank guarantee for the bid bond. If he wins the contract, he may have to furnish bank guarantees to foreign buyers to ensure due performance or against advance payment or in lieu of retention money or to a foreign bank in case he has to raise overseas finance for his contract.

    • 0
    • Reply
    • Share
      Share
      • Share on Facebook
      • Share on Twitter
      • Share on LinkedIn
      • Share on WhatsApp
Leave an answer

Leave an answer
Cancel reply

Browse

Sidebar

Ask A Question

Stats

  • Questions 340
  • Answers 343
  • Popular
  • Answers
  • Anonymous

    I need MCS-014 Assignment solution. ...

    • 14 Answers
  • himanshu

    i want answers of assignment ...

    • 11 Answers
  • Anonymous

    Can anyone provide answers of ...

    • 8 Answers
  • Anonymous

    What does the IGNOU BCA ...

    • 7 Answers
  • Vandana

    Calculate the physical address ...

    • 6 Answers
  • admin
    admin added an answer Experimental design is a key component of social psychology research. Social psychology experiments often involve manipulating one or more independent variables and measuring the effects on one or more dependent… March 4, 2023 at 10:59 am
  • admin
    admin added an answer Please post it as a separate question. March 4, 2023 at 10:50 am
  • Tamanna Dasgupta
    Tamanna Dasgupta added an answer Explain Erikson theory of psychosocial development and discuss it's education implications March 4, 2023 at 10:48 am
  • admin
    admin added an answer Evaluating a curriculum is an important process that helps determine the effectiveness of the curriculum and identify areas that need improvement. Here is a plan for how I would carry… January 27, 2023 at 2:41 pm
  • admin
    admin added an answer International Commission on Education for the Twenty-First Century Learning was headed by Jaques Delors, the former French Minister of Economy and Finance. The commission aimed at formulating suggestions and recommendations… January 27, 2023 at 2:29 pm

Top Members

admin

admin

  • 2 Questions
  • 1k Points
Pooja Sharma

Pooja Sharma

  • 7 Questions
  • 39 Points
Roushani Kumari

Roushani Kumari

  • 1 Question
  • 34 Points

Trending Tags

Free Assignments Free Solved Assignments IGNOU BCA Solved Assignments IGNOU BCOM Solved Assignments

Explore

  • Home
  • Categories
    • All Questions
    • Commerce
    • Computer Science
    • Economics
    • English
    • General Queries
    • Political Science
    • Public Administration
    • Psychology
    • Sociology
    • Others
  • Tags
  • Users
  • Contact Us

Footer

IGNOU Answers

About

IGNOU Answers is a social Questions & Answers platform which will help you to find answers to your questions..

Question Tags

BA Sociology ESO-11 Export Procedures and Documentation fst-01 International Business Finance ma english ma psychology mpc-004 question The Study of Society

Categories

  • Commerce
  • Computer Science
  • Economics
  • English
  • General Queries
  • Others
  • Political Science
  • Psychology
  • Public Administration
  • Science
  • Sociology

Useful Links

  • Home
  • Contact Us
  • Privacy Policy
  • Buy Assignments
  • IGNOU Updates

© 2021 IgnouAnswers.com. All Rights Reserved
Created With Love by KHOJINET.

Insert/edit link

Enter the destination URL

Or link to existing content

    No search term specified. Showing recent items. Search or use up and down arrow keys to select an item.