FM announces Rs 1.1 trn loan guarantee scheme for Covid affected sectors

Photo: ANI

Finance Minister Nirmala Sitharaman on Monday announced a Rs 1.1 lakh crore (Rs 1.1 trillion) loan guarantee scheme for Covid-affected sectors.

The scheme would include Rs 50,000 crore loan to the health sector aimed at scaling medical infrastructure targeting underserved areas.

The scheme would entail guarantee cover for expansion and new projects related to health and medical infrastructure in cities other than eight metropolitan cities.

For aspirational districts, the guarantee cover would be 75 per cent for both new projects and expansion.

The maximum loan amount under the newly announced scheme would be Rs 100 crore and the duration of guarantee would be up to three years.

The interest rate for the loans would be capped at 7.95 per cent.

Sitharaman also said that the guarantee would be provided by National Credit Guarantee Trustee Company Ltd.

Under the scheme, loans worth Rs 60,000 crore would be allowed for sectors other than health at an interest rate capped at 8.25 per cent per annum.

The normal interest rate without the guarantee cover is 10-11 per cent.



(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel