Trade Finance
ECGC Policy for Exporters: Coverage, Cost, Premium & Login (2026)
ECGC — the Export Credit Guarantee Corporation of India — protects exporters against buyers who do not pay and against political risk. Here is what ECGC policies cover, the coverage percentages, how premiums are set, and how to log in on the ecgc.in portal.
What is ECGC?
The Export Credit Guarantee Corporation of India Limited (ECGC) is India’s export credit agency — a Government of India enterprise under the Department of Commerce, established in 1957. It sells export credit insurance to exporters and guarantee cover to banks, so that Indian exporters can sell on open account without betting the whole receivable on a foreign buyer’s ability to pay.
In practical terms, ECGC does two jobs. For exporters, it compensates you when a foreign buyer defaults or a political event blocks payment. For banks, it guarantees the export credit — packing credit and post-shipment finance — they extend to you, which is why ECGC cover often makes the difference between a bank saying yes or no to your export financing.
What does an ECGC policy cover?
ECGC divides the risks it covers into commercial and political.
- Commercial risks: the buyer’s insolvency, protracted default (roughly four months past due), and the buyer’s failure to accept the shipped goods.
- Political risks: war or civil war, new import restrictions or cancellation of licences, and transfer delays that stop payment reaching India.
Not covered: disputes over quality, exchange-rate fluctuation, your own breach of contract, and purely domestic trade. ECGC covers the buyer’s country risk, not your deal execution risk.
ECGC policies for exporters
| Policy | What it covers | Best for |
|---|---|---|
| Shipment (Standard) Policy | Whole-turnover export sales on credit terms up to 180 days | Regular exporters with a spread of buyers |
| Small Exporters Policy | Turnover up to about ₹5 crore per year | Small exporters with modest volumes |
| Specific Shipment Policy | Individual shipments, incl. deferred-payment capital goods | One-off or project-based exports |
| Exports (Specific Buyers) Policy | Shipments to a specific buyer or LC-opening bank | Exporters concentrated on one buyer |
| Buyer Exposure Policy | Exposure to a selected buyer across multiple shipments | Ongoing single-buyer relationships |
ECGC cover for banks: packing credit and post-shipment
ECGC’s Export Credit Insurance for Banks (ECIB) is what makes export financing easier to get. It guarantees the bank’s exposure on two stages of the export cycle.
- Pre-shipment (packing credit): covered at around 66.66% under individual or whole-turnover packing credit guarantees.
- Post-shipment: covered at around 60–75% under post-shipment guarantees.
- Whole-turnover ECIB typically covers around 75% of the exposure.
- Small exporters with packing and post-shipment limits up to ₹20 crore can get enhanced 90% cover.
Because ECGC carries part of the default risk, your bank can offer packing credit and post-shipment finance on better terms — which is exactly why our packing credit guide and ECGC cover are two halves of the same export working capital story.
ECGC coverage percentage
- Shipment (Standard) Policy: up to 90% of the loss for commercial and political risks.
- Buyer Exposure Policy: 90% for standard-policy holders, 80% for others.
- Exports (Specific Buyers) Policy: normally around 80% of gross shipment value.
- Small Exporters Policy: enhanced cover for small volumes ⚠️ confirm the exact percentage on your policy schedule.
- Banks (ECIB): packing credit ~66.66%, post-shipment ~60–75%.
Cover is on the loss, not the shipment
ECGC compensates a percentage of the amount you actually lose on a default — not a percentage of your total shipment value. Keep buyer-wise credit limits approved and current, because claims outside approved limits are not paid.
ECGC premium and cost
ECGC premium is calculated as a percentage of your insured turnover or shipment value, and it depends on three factors: the terms of payment (sight LC costs less than 90-day open account), the credit period, and the buyer country’s risk classification. ECGC publishes rate schedules in paise per ₹100 rather than a single headline percentage ⚠️.
- A No Claim Bonus of 5% per claim-free year, up to a maximum of 50% of the premium.
- Turnover discounts on certain policies for high volumes.
- Processing fees on specific policies — e.g. around ₹2,000 for a Specific Buyers Policy and a minimum premium on the Small Exporters Policy ⚠️.
ECGC portal: login and online services
ECGC moved its services online to the ECGC SMILE portal at ecgcltd.in. From a single login — using your user ID or IEC for exporters — you can apply for policies, submit credit-limit applications on buyers, file shipment declarations, file and track claims, and download your policy documents.
The public site ecgc.in carries scheme details and premium schedules, the toll-free helpline is 1800-22-4500, and grievances go through the IGMS portal at igms.ecgc.in. For exporters who want insurance without the paperwork burden, this is the first stop.
ECGC eligibility: the IEC first
To buy an ECGC policy you need a valid importer-exporter code (IEC) issued by DGFT — it is mandatory for exporting from India under the Foreign Trade Policy. With an IEC and your business details, you can apply for any ECGC policy for goods, services or projects.
Banks and NBFCs that extend export credit can hold ECGC guarantee covers in the same way, subject to the borrower being a standard asset and the standard eligibility checks.
ECGC plus trade finance: the full picture
ECGC covers your risk of non-payment; trade finance moves your cash. The two work together: hold an ECGC policy to insure the exposure, and use export factoring or LC discounting to convert shipped invoices and letters of credit into cash within days. On the import side, ECGC-backed bank facilities sit alongside multicurrency accounts and cross-border payments for paying suppliers.
Finance your export after the insurance is in place
Check your buyer country for factoring and LC discounting coverage, and get a recommendation before you negotiate payment terms.
Open the financing checkerFrequently asked questions
What is the ECGC full form?
ECGC stands for the Export Credit Guarantee Corporation of India Limited — a wholly owned Government of India enterprise under the Department of Commerce, Ministry of Commerce & Industry. Established in 1957, it is India’s export credit agency, providing export credit insurance to exporters and guarantee cover to banks on export credit.
What does an ECGC policy cover?
ECGC covers commercial risks — the buyer’s insolvency, protracted default, or failure to accept the goods — and political risks such as war, new import restrictions and transfer delays. It also protects banks through Export Credit Insurance for Banks (ECIB) on pre-shipment (packing credit) and post-shipment lending. It does not cover quality disputes or currency fluctuation.
How much does ECGC cover?
Under the standard shipment policy the cover is up to 90% of the loss for both commercial and political risks. The Specific Buyers Policy covers around 80% of the gross shipment value, and the Buyer Exposure Policy covers 90% for standard-policy holders and 80% for others. For banks, packing credit is covered at about 66.66% and post-shipment lending at 60–75%.
How much does an ECGC policy cost?
The premium is a percentage of your insured turnover or shipment value, driven by the terms of payment (sight LC vs DA/DP and the credit period) and the buyer country’s risk classification. ECGC also offers a No Claim Bonus of 5% per year up to a maximum of 50% ⚠️. Exact rates are published as per-₹100 schedules, so get a quote for your specific trade pattern.
How do I log in to ECGC and apply for a policy?
Exporters apply online through ECGC SMILE at ecgcltd.in. You log in with your user ID or IEC (importer-exporter code), apply for a policy, submit credit-limit applications and shipment declarations, and file claims — all online. Grievances go through igms.ecgc.in, and the ECGC toll-free helpline is 1800-22-4500.
Who is eligible for an ECGC policy?
Any exporter with a valid IEC (importer-exporter code issued by DGFT) can buy an ECGC policy for goods, services or projects under the Foreign Trade Policy. Banks and other authorised lending institutions can hold ECGC guarantee covers on the export credit they extend.
Does ECGC cover pre-shipment finance?
Yes, indirectly. ECGC’s Export Credit Insurance for Banks (ECIB) guarantees the packing credit (pre-shipment) and post-shipment finance that banks extend to exporters. That is why a bank can offer you packing credit more easily when ECGC cover is in place — see our packing credit guide for the full mechanics.
Do I still need ECGC if I use factoring or LC discounting?
They are complementary. ECGC insures your risk of non-payment on the whole export; factoring and LC discounting turn your invoices and LCs into cash immediately. You can hold an ECGC policy and still factor your invoices or discount your LCs — the insurance protects your exposure, the financing speeds up your cash flow.
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