Revolutionizing Export Financing with NIRVIK Scheme

In a bold move to enhance India's export competitiveness, the commerce department has introduced the Niryat Rin Vikas (NIRVIK) scheme. This initiative aims to provide MSMEs and new exporters with low-cost, collateral-free loans, addressing the critical issue of high interest rates that have long plagued Indian exporters.

Easing the Financial Burden on Exporters

The government is set to eliminate the need for collaterals for over 80% of the loan requirement, leveraging an innovative online evaluation system. Exporters will benefit from a unique ID and monthly or quarterly fund disbursals, supported by a credit guarantee fund to mitigate risks.

Expanding Opportunities in New Markets

With plans to cover up to 90% of the risk for MSMEs venturing into high-risk markets, the initiative promises to back at least 1,000 exporters in its first year. Additionally, the Focused Market Access Initiative will subsidize participation in international fairs, covering up to 90% of the costs, to help exporters establish a global presence.

Enhancing Access to Working Capital

The commerce department is also facilitating easier access to working capital through advanced trade finance instruments like factoring and vendor financing, specifically designed to meet the needs of small exporters.