Indian Finance Minister Nirmala Sitharaman has made an announcement of Rs 1.1 lakh crore loan guarantee scheme for the covid-affected sectors which has been bifurcated into two parts. Well, Rs 50,000 crore is allocated for the health sector and the rest Rs 60,000 crore for the other sectors.
Further, Sitharaman also made an announcement of more than Rs 1.5 lakh crore for the Emergency Credit Line Guarantee Scheme. However, sector-wise details are also provided as per the evolving requirements. Moreover, the credit guarantee scheme will also help in facilitating loans of around Rs 1.5 lakh to 25 lakh persons through MFIs.
Further, she also promised to offer financial support to over 11,000 registered tourist guides/ travel and tourism stakeholders through the loan guarantee scheme of COVID- affected sectors.
After restoring Visa insurance, almost the first 5 lakh tourist visas will be provided for free of charge. She announced Atmanirbhar Bharat Rozgar Yojana will again extend from 30th June to 31st March 2022.
Moreover, the existing limit for the ECLGS scheme has been also announced as a part of the Rs 20-lakh crore Atmanirbhar Bharat Abhiyan package in May 2020 which was around Rs 3 Lakh crore. In the last month, the finance minister even expanded the scope of Rs. 3 lakh crore ECLGS which involves concessional loans to hospitals for setting up the on-site oxygen generation plants.
On the other hand, the validity of the scheme has now expanded almost by three months to around 30th September and yet guarantees for around Rs 3 lakh crore are issued. However, the last date of the disbursement under the scheme has been extended to almost 31st December.
Under the ECLGS 4.0, 100 percent guarantee cover was given to loans up to almost Rs. 2 crores to hospitals, nursing homes, clinics, medical colleges for setting up on-site oxygen generation plants.
Moreover, the rate of interest on these loans has been even capped at almost 7.5 percent that means the banks can even offer loans less than the ceiling.