NEW DELHI: Minister of Finance Nirmala Sitharaman on Monday announced a guarantee scheme of RS 1.1 Lakh Crore loans to increase sector growth which was influenced by the Covid-19 pandemic.
Announcing a set of relief steps, Finance Minister Nirmala Sitharaman said that the scheme would allow medical infrastructure and the health sector to increase loans with a lower interest rate of 8 percent to 8.25 percent per year.
From Crore RS 1.1 Lakh, RS 50,000 Crore has been allocated to the health sector and RS 60,000 Crore for other sectors.
“We announce about eight steps of economic reliefs, where four at all new and one specifically for health infrastructure.
For the affected area of Covid, RS 1.1 Lakh’s Crore Credit Guarantee Scheme and Rs 50,000 Crore for the health sector,” Sitharaman said.
Below, the maximum loan amount for the health sector will become Rs 100 Crore with a lid of interest of 7.95 percent.
Meanwhile, for other sectors, the interest rate has been limited to 8.25 percent.
This scheme will cover expansion costs and new projects related to health and medical infrastructure in cities other than eight metropolitan cities.
The center will provide a guarantee of 50 percent guarantee for expansion and 75 percent for new notifications.
Apart from this, additional Rs 1.5 lakh Crore under the Emergency Credit Line Guarantee Scheme (ECLGS) has been announced.
This is additional for the Crore RS 3 Lakh announced under the scheme last year.
The government announced the RS 1.1L CR loan guarantee scheme
