In the midst of the Coronavirus pandemic, Indian Finance Minister Nirmala Sitharaman announced an economic relief package on Monday. She has announced a loan guarantee scheme of Rs 1.1 lakh crore for the sectors affected by Covid-19 in the press conference. Under this scheme, a loan guarantee of Rs 50 thousand crore is being given to the health sector, while Rs 60 thousand crore is being given to other sectors. Under this, loans up to Rs 100 crore will be given at 7.95 percent interest. Whereas for other sectors the interest rate will not exceed 8.25%. Months prior the Finance Minister had just reduced the GST of Coronavirus related medicine and other essential items such as ambulances etc.
Announcing that Union Finance Minister Nirmala Sitharaman said that there is a credit guarantee scheme for 3 years. Loan facility will be given to small lenders. Help will be given to 11 thousand tourist guides. The Finance Minister announced measures to give relief to the Indian tourism sector. Travel agencies in India will get loans up to Rs 10 lakh, tourist guides will get loans up to Rs 1 lakh.
Nirmala said that after the end of the travel restrictions enforced as a result of coronavirus, the government will waive visa fees for the first five lakh passengers to visit the country. Under this scheme, financial assistance of Rs 100 crore will be given and a tourist will get the benefit of the scheme only once.
The Indian Finance Minister at the announcement of the economic relief package said that the scope of the Emergency Credit Facility Guarantee Scheme is being expanded, under this scheme loans have been provided to MSMEs (Micro, Small and Medium Enterprises), other sectors without any guarantee. The Finance Minister announced a new scheme to provide loans to 25 lakh small loan creditors at lower interest rates. Under this, a loan of up to Rs 1.25 lakh will be given.
Under the credit guarantee scheme, small businesses, individual NBFCs will be able to take loans up to Rs 1.25 lakh from micro finance institutions. Its main purpose is to disburse new loans. However, on this, a maximum of 2 percent interest can be taken on the MCLR of the bank. The tenure of this loan will be 3 years and the government will guarantee it. About 25 lakh people will get the benefit of this scheme. Along with this, all types of borrowers including defaulters of 89 days will be eligible for this. Nirmala said that the Garib Kalyan Anna Yojana will continue till November. He said that efforts are being made to deliver food to the people in every nook and corner of the country.