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.
|Maximum Loan & Interest Rate||Maximum Loan of INR 100 crore, capped Interest rate of 7.95% and guarantee provided for 3 years.|
|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 will 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.
- The tenor of NCGTC’s guarantee would be for a maximum period of 3 years.
Recent Related News:
June 29, 2021, Union Minister for Finance Nirmala Sitharaman announced an ‘Economic Relief from Pandemic’ stimulus 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