Small Exporters Policy (SEP)

The Small Exporters Policy is a credit‐insurance/cover scheme run by the Export Credit Guarantee Corporation of India Ltd , a Government of India enterprise operating under the Ministry of Commerce & Industry. It is designed to support small Indian exporters by providing cover against commercial and political risks in export transactions. SEP is issued for a policy period of 12 months and is targeted at exporters whose anticipated annual export turnover does not exceed a specified limit . The purpose is to encourage smaller exporters to obtain export credit cover and thereby operate with greater confidence in international markets.

Key Features
Financial Assistance
Eligibility Criteria
Documents Required
Application Process for the Scheme

Key Features

Cover for commercial risks and political risks: Under SEP you get protection against buyer non-payment (commercial risk) and against events such as war, government restrictions, or currency restrictions in a buyer’s country (political risk).
Policy period of 12 months: The policy is valid for one year from the date of issue, so you need to project your exports for the forthcoming 12-month period and declare shipments accordingly.
Minimum premium requirement: You as the exporter pay a premium based on your projected export turnover, with a minimum fixed premium (for example Rs 5,000) set for the policy period so that smaller exporters can participate.
Monthly shipments and overdue declarations: You must declare all shipments made and payments overdue beyond a specific period (e.g., payments overdue more than 60 days) on a monthly basis, making monitoring simpler and tailored to smaller businesses.
Reduced waiting period for claims: The waiting period i.e., time you must wait before you can make a claim after a risk event such as non-payment is significantly lower under SEP compared to the standard policy.
Flexible payment-terms adjustments: SEP allows certain flexibilities such as converting a Documents against Payment (D/P) bill into Documents against Acceptance (D/A) or extending the due date on D/A bills (within defined limits) without requiring prior approval by ECGC.
Resale of unaccepted goods provision: If goods are not accepted by the overseas buyer, SEP permits you to resell to an alternate buyer (under defined conditions) and still seek claim cover up to a reasonable amount, provided you have acted promptly and sought to minimise loss.

Financial Assistance

Component	Assistance Provided	Detailed Explanation & Example
Export credit‐risk cover	Coverage of loss from export transactions subject to policy limits	Example: If you project exports of Rs 4 crore and you obtain SEP, ECGC may cover losses from overseas buyer non-payment or political risk up to the maximum liability allowed under the policy.
Minimum premium threshold	Lower entry barrier via minimum required insurance premium	Example: As a small exporter you may pay a minimum premium (say Rs 5,000) even if your turnover is modest, making the insurance cover affordable.
Simplified compliance and faster claims	Easier declarations and shorter waiting period for claims	Example: Instead of longer waiting times or heavy monthly paperwork, SEP allows you to declare overdue payments monthly and enables quicker claim settlement in case of buyer non-payment.

Eligibility Criteria

Who Can Apply:

Exporters with an annual export turnover of up to Rs. 50 crore.
Exporters engaged in the export of goods or services permitted under current EXIM and FEMA regulations.
Exporters making short-term shipments on credit terms up to 360 days.
New exporters planning to start international trade within the policy year.
Exporters supplying to multiple small or medium-value buyers overseas.

Who Cannot Apply:

Exporters with turnover exceeding Rs. 50 crore.
Exporters shipping goods that fall under restricted or prohibited categories without appropriate licences.
Exporters with a history of major defaults, unresolved ECGC claims or negative credit records.
Exports made to countries or buyers classified as high-risk or blocked under ECGC norms.
Exporters seeking coverage for long-term credit beyond the short-term limit.

Documents Required

IEC certificate of the exporter
PAN and GST details
Exporter profile and KYC documents
Bank account details
Last three years’ export turnover or projected turnover
Buyer information including country, payment terms and transaction history
Shipment details and declarations after policy issuance

Application Process for the Scheme

Option 1: Apply with Bullit (Recommended)

Click here to start with guided support. Our team verifies eligibility, compiles documents, and handles application & follow-ups on your behalf. You can monitor progress while focusing on operations.

Recommended for: Lean teams. Designed to save you time and effort. Access expert help from start to finish.

Option 2: Apply through ECGC (Official Process)

Visit the ECGC portal or nearest branch office.
Fill the Small Exporters Policy (SEP) application form.
Submit exporter profile, financial details and buyer information.
Provide turnover details or projections for new exporters.
Pay premium as per policy risk category.
ECGC issues the policy along with buyer limits and approved coverage conditions.

Power Combos with The Scheme