National Credit Guarantee Trustee Company Ltd (NCGTC) issued operational guidelines for the INR 50,000 crore Loan Guarantee Scheme for COVID-19 Affected Sectors (LGSCAS). The LGSCAS scheme aims to improve medical infrastructure in non-metros (8 metros have been excluded).
- LGSCAS was announced as part of the INR 6.29 Lakh crore stimulus package announced by Finance Minister Nirmala Sitharaman in June, 2021.
Operational Guidelines
| Maximum Loan & Interest Rate | Maximum Loan of INR 100 crore, capped Interest rate of 7.95% and guarantee provided for 3 years. |
| Eligibility |
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| Credit Guarantee |
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| Guarantee Period | The Guarantee for loan up to INR 100 crore per project will be valid up to 2 years from the Date of Commencement of Commercial Operations, subject to maximum period of 5 years from the date of 1st disbursement. |
i.The scheme covers funding provided by the Member Lending Institutions (MLIs) to MFIs/NBFC-MFIs (Micro Finance Institutions/Non-Banking Financial Company) till March 31, 2022 or till guarantees for an amount of INR 7,500 crore are issued.
- MFIs┬аwill be eligible for loans at one-year marginal cost-based lending rate plus 2% per annum.
- The funding provided by lenders will be guaranteed by NCGTC to the extent of 75 % of the amount in default for a maximum period of 3 years.
- ┬аThe tenor of NCGTCтАЩs guarantee would be for a maximum period of 3 years.
Recent Related News:
June 29, 2021, Union Minister for Finance Nirmala Sitharaman announced an тАШEconomic Relief from PandemicтАЩ┬аstimulus package worth INR 6,28,993 crore to support the Indian Economy during the fight against COVID-19 pandemic.
About National Credit Guarantee Trustee Company Ltd (NCGTC)
It was set up by the Department of Financial Services, Ministry of Finance to act as a common trustee company to manage and operate various credit guarantee trust funds.
Chairman – Sivasubramanian Ramann
Head Office – Mumbai, Maharashtra
