Finance Minister Nirmala Sitharaman has declared a Rs 1.1 lakh crore loan assurance policy for COVID-influenced sectors which is bisected into two parts, one is Rs 50,000 crore that has been assigned to the health sector and the other one is Rs 60,000 crore for other sectors.
Apart from this, Sitharaman had further declared an additional Rs 1.5 lakh crore under the Emergency Credit Line Guarantee Scheme (ECLGS). The sector-wise attribute will be given as per developing requirements. This credit guarantee scheme will help in encouraging loans of up to Rs 1.25 lakh to 25 lakh persons via MFIs.
She further guaranteed financial support to more than 11,000 enlisted tourist guides/travel and tourism associates through the loan guarantee scheme for COVID-influenced sectors.
After the resumption of visa issuance, the first 5 lakh tourist visas will be rendered complimentary, Sitharaman declared. The Atmanirbhar Bharta Rozgar Yojana is further extended from June 30, 2021, to March 31, 2022.
The existing deadline for the ECLGS scheme, assured as part of the Rs 20-lakh crore Atmanirbhar Bharat Abhiyan package in May 2020, was Rs 3 lakh crore. Previous month, the finance ministry expanded the scope of the Rs 3 lakh crore ECLGS by including soft loans to hospitals for initiating on-site oxygen generation plants.
Apart from this, the validity of the policy was expanded by three months to September 30, and/ till guarantees for an amount of Rs 3 lakh crore are issued. The last date of disbursement under the policy has been expanded to December 31.
Under the ECLGS 4.0, 100 percent assurance cover was given to loans up to Rs 2 crore to hospitals, nursing homes, clinics, medical colleges for initiating on-site oxygen generation plants.
The interest rate on these loans has been fixed at 7.5 percent, which means the banks can offer loans less than this limit.