Centre announces Rs 1.1 lakh crore loan guarantee scheme for COVID-19-hit sectors

New Delhi: With a focus on health and medical infrastructure, the Finance Ministry on Monday announced a Rs 1.1 lakh crore loan guarantee scheme for COVID-19-hit sectors. Out of the Rs 1.1 lakh crore, the health care sector will get Rs 50,000 crore, while the others will get Rs 60,000 crore.

“Total of Rs 1.1 lakh crore guarantees is being given for particularly COVID affected sectors and in that health sector with a Rs 50,000 crore cover receives attention for scaling up medical infrastructure,” Union Finance Minister Nirmala Sitharaman announced while addressing a press conference.

The guarantee coverage for the projects, which are totally new will get upto 75 per cent coverage and projects which are on expansion will get 50 per cent coverage.

“This guarantee will last for 3 years and the interest rate is capped at 7.95 per cent,” she added.

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Additionally, with an aim to provide further economic relief to micro, small and medium enterprises (MSMEs) amid the ongoing COVID-19 pandemic, the Centre on Monday expanded the financial support being provided under the Emergency Credit Line Guarantee Scheme (ECLGS) by Rs 1.5 lakh crore.

ECLGS will now have a total outlay of Rs 4.5 lakh crore, up from the earlier Rs 3 lakh crore.

“The overall cap of admissible guarantee has been raised from Rs 3 lakh crore to Rs 4.5 lakh crore,” Sitharaman said.

“Out of Rs 3 lakh crore announced earlier, Rs 2.69 lakh crore have already been disbursed through the ECLGS 1.0, 2.0 and 3.0,” she said.