Finance Minister Nirmala Sitharaman on Monday announced a Rs 1.1 lakh crore loan guarantee scheme for Covid-affected sectors.
The scheme would include a Rs 50,000 crore loan to the health sector aimed at scaling medical infrastructure targeting underserved areas.
The scheme would entail guarantee cover for expansion and new projects related to health and medical infrastructure in cities other than eight metropolitan cities.
For aspirational districts, the guarantee cover would be 75 percent for both new projects and expansion.
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The maximum loan amount under the newly announced scheme would be Rs 100 crore and the duration of the guarantee would be up to three years.
The interest rate for the loans would be capped at 7.95 percent.
Sitharaman also said that the guarantee would be provided by National Credit Guarantee Trustee Company Ltd.
Under the scheme, loans worth Rs 60,000 crore would be allowed for sectors other than health at an interest rate capped at 8.25 percent per annum.
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The normal interest rate without the guarantee cover is 10-11 percent.
SOURCE-IANS
