Sitharaman announces Rs 1.1 lakh crore loan guarantee scheme for COVID-affected sectors

New Delhi, June 28: To help revival of the economy battered by coronavirus pandemic, Finance Minister Nirmala Sitharaman on Monday announced Rs 1.1 lakh crore loan guarantee scheme for COVID-affected sectors.

Addressing a press conference, Sitharaman said this comprises eight relief measures and other eight measures to support the economic growth.

"Rs 1.1 lakh crore loan guarantee scheme for COVID-affected sectors announced. Of this, Rs 50,000 crore has been allocated to the health sector and Rs 60,000 crore for other sectors," she said.

The loan gurantee scheme includes Rs 50,000 crore for health sector. Interest rate on these loans is capped at 7.95%, which is much lower than the market rate, she said.

The government is expanding the scope of emergency credit line guarantee scheme. We are adding another 1.5 lakh crore to the existing corpus of Rs 3 lakh crore, the finance minister announced.

"We are announcing a totally new scheme," Sirtharaman said as she announced a "credit guarantee scheme to facilitate loans to 25 lakh persons through micro finance institutions."

"The focus is on new lending, and not repayment of old loans," she also said.

All borrowers (including defaulters upto 89 days) are eligible for the scheme. Lending will be upto Rs 1.25 lakh.

The new Credit Guarantee Scheme will also reach out to the smallest of the small borrowers in the hinterland, including in small towns, she said.

Once visa issuance starts again, first 5 lakh tourist visas to be issued free of charges, announced Sitharaman.

EPF support to employers and employees under Aatmanirbhar Bharat Rozgar Yojana has been extended till March 31, 2022.The scheme was first rolled out in October 2020.

Rs 23, 220 crore more sharpy focussing on children and pediatric cares and public health.

Under Pradhan Mantri Gareeb Kalyan Anna Yojana, 5 kg of food grains will be provided free of cost to NFSA beneficiaries from May to November this year.