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Breaking News| Loans at just 2% intrest announced under New Credit Gurantee Scheme

Jun 28, 2021
FM Nirmala Sitharaman during the press meet today

Along with many announcement one among the main was Providing Loans at just 2% intrest under New Credit gurantee Scheme

Finance Minister Nirmala Sitharaman has announced a Rs 1.1 lakh crore loan guarantee scheme for COVID-affected sectors which is bifurcated into two parts, one is Rs 50,000 crore that has been allocated to the health sector and the other one is Rs 60,000 crore for other sectors.

Besides that, Sitharaman had further announced an additional Rs 1.5 lakh crore under the Emergency Credit Line Guarantee Scheme (ECLGS). The sector-wise details will be given as per evolving needs. This credit guarantee scheme will help in facilitating loans of up to Rs 1.25 lakh to 25 lakh persons via MFIs.

She further promised to give financial support to more than 11,000 registered tourist guides/travel and tourism stakeholders through the loan guarantee scheme for COVID-affected sectors.

We are announcing about 8 economic relief measures, of which four are absolutely new & one is specific to health infrastructure. For Covid-affected areas, Rs 1.1 lakh crores credit guarantee scheme and Rs 50,000 crores for health sector: Union Finance Minister Nirmala Sitharaman

Under Credit Guarantee Scheme, which is a new scheme, 25 lakh people to be benefitted. Loan to be given to the smallest borrowers by Microfinance Institutions. A maximum Rs 1.25 lakhs amount to be lent. Focus is on new lending & not on repayment of old loans: Finance Minister

The interest rate under the new Credit Guarantee Scheme is 2% below RBI prescribed rate, with a loan duration of 3 years. Focus on new loans, stressed borrowers except NPAs to be covered: Finance Minister

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

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