Government of India through Ministry of Finance, Department of Financial Services has introduced Loan Guarantee Scheme for Covid Affected Sectors (hereinafter referred to as the Scheme) to provide guarantee coverage to eligible lending institutions for their loans to eligible projects in the healthcare sector.
Scheme Guidelines
Sl.No |
Parameters |
Features |
1 |
Target Group |
Projects in the healthcare sector for setting up of or for modernising /expansion of (i) hospitals/dispensaries/clinics/medical colleges/pathology labs/diagnostic centres; (ii) facilities for manufacturing of vaccines/oxygen/ventilators/priority medical devices and (iii) public healthcare facilities. The said projects should be in non-Metro cities. |
2 |
Eligibility Criteria |
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3 |
Area of operation |
Existing units proposing to expand/diversify/set up eligible projects or new units setting up eligible projects in areas other than 8 metropolitan cities. The 8 metropolitan cities are municipal areas of Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Kolkata, Mumbai, Pune cities. Projects coming up in the suburbs of these cities would be eligible for coverage. |
4 |
Scheme validity |
The Scheme would be applicable to all loans sanctioned under LGSCAS during the period from May 07, 2021 to March 31, 2022 or till guarantees for an amount of Rs.50,000 crore are issued under LGSCAS, whichever is earlier. |
5 |
Nature of facility |
|
6 |
Rate of Interest |
Interest Rate on loans covered under LGSCAS would be charged as per the RBI guidelines and capped at 7.95 % p.a. till availability of the guarantee cover. |
7 |
Primary security |
Bank shall have first charge on the asset created out of the credit extended under LGSCAS. However, NCGTC shall have second charge on the assets financed under the Scheme (under both Greenfield and Brownfield projects). |
8 |
Guarantee fee |
Nil |
9 |
Guarantee Coverage |
|
10 |
Time period of guarantee cover |
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11. |
Other charges |
As per extant service charge guidelines |
12. |
Area of operation |
Units located at areas other than 8 metropolitan cities. The 8 metropolitan cities are which are municipal area of Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Kolkata, Mumbai, Pune cities. Projects coming up in the suburbs of these cities would be eligible for coverage. |
13. |
NCGTC guidelines |
Please visit https://www.ncgtc.in/en/products-n-services/lgscas |