Finance Minister Nirmala Sitharaman announces Rs 1.1 lakh crore loan guarantee scheme for COVID-affected sectors: Check details

Finance Minister Nirmala Sitharaman has announced a Rs 1.1 lakh crore loan guarantee scheme for COVID-affected sectors which is bifurcated into two parts, one is Rs 50,000 crore that has been allocated to the health sector and the other one is Rs 60,000 crore for other sectors.

Besides that, Sitharaman had further announced an additional Rs 1.5 lakh crore under the Emergency Credit Line Guarantee Scheme (ECLGS). The sector-wise details will be given as per evolving needs. This credit guarantee scheme will help in facilitating loans of up to Rs 1.25 lakh to 25 lakh persons via MFIs.

She further promised to give financial support to more than 11,000 registered tourist guides/travel and tourism stakeholders through the loan guarantee scheme for COVID-affected sectors.

After the restarting of visa issuance, the first 5 lakh tourist visas will be given free of charge, Sitharaman announced. The Atmanirbhar Bharta Rozgar Yojana is further extended from June 30, 2021, to March 31, 2022.

The existing limit for the ECLGS scheme, announced as part of the Rs 20-lakh crore Atmanirbhar Bharat Abhiyan package in May 2020, was Rs 3 lakh crore. Last month, the finance ministry expanded the scope of the Rs 3 lakh crore ECLGS by including concessional loans to hospitals for setting up on-site oxygen generation plants.

Besides, the validity of the scheme was extended by three months to September 30, and or till guarantees for an amount of Rs 3 lakh crore are issued. The last date of disbursement under the scheme has been extended to December 31.

Under the ECLGS 4.0, 100 percent guarantee cover was given to loans up to Rs 2 crore to hospitals, nursing homes, clinics, medical colleges for setting up on-site oxygen generation plants.

The interest rate on these loans has been capped at 7.5 percent, which means the banks can offer loans less than this ceiling.

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