Finance Minister Nirmala Sitharaman on Monday announced a credit guarantee program worth Rs 1.1 lakh crore for sectors affected by Covid. Addressing a press conference in New Delhi, she also said that Rs 50,000 crore had been allocated for health sector development.
“We are announcing around eight economic aid measures, four of which are absolutely new and one is specific to health infrastructure. For areas affected by Covid, a credit guarantee program of Rs 1.1 lakh crore and Rs 50,000 crore for the health sector, ”said Nirmala Sitharaman. .
The Minister of Finance added that up to 25 lakhs of people could benefit from the new credit guarantee program.
“Loans will be made to smaller borrowers by microfinance institutions. A maximum amount of Rs 1.25 lakh to lend. The focus is on new loans and not on repaying old loans,” said Monday Sitharaman to reporters.
Interest rate – new credit guarantee system
Union Finance Minister Nirmala Sitharaman said the interest rate under the new credit guarantee program is 2% lower than the rate prescribed by the RBI, with a three-year loan term . The focus will be on new loans and troubled borrowers, with the exception of NPAs (non-performing assets), will be covered by this scheme.
She added that the new credit guarantee scheme will also reach the “smallest of small borrowers” in the hinterland, including in small towns.
Big boost for the travel industry
As part of Monday’s announcements, Sitharmanan also announced relief for the tourism sector. Travel agencies, she said, will be able to get a retail loan of Rs 10 lakh while tour guides will be eligible for a loan of Rs 10 lakh.
Emergency credit line guarantee system
Finance Minister Nirmala Sitharmana said the Emergency Credit Line Guarantee Program (ECLGS) will be enhanced with the injection of an additional Rs 1.5 lakh crore.
Rs 50,000 crore for the health sector
An amount of Rs 50,000 crore has been earmarked for strengthening medical infrastructure in the country, Sitharaman said.
