Loan Guarantee Scheme For Covid Affected Sectors

Loan Guarantee Scheme For Covid Affected Sectors


 

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

  • Total loan requirement upto Rs.100 crore (including fund based and non-fund based facility)
  • Project coming up in a non-Metropolitan area
  • Project pertains to the healthcare sector for setting up of or modernisation/expansion of (i)hospitals/dispensaries/clinics/medical colleges/pathology labs/diagnostic centres; (ii)manufacturing of vaccines/ oxygen/ ventilators/priority medical devices; and (iii) public healthcare facilities.
  • Loans provided in individual capacity will not be covered under the Scheme.

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

  • Term loan
  • Working capital facility(Fund based/Non fund based):Need based

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

  • For Greenfield projects – 75%
  • For Brownfield projects – 50%; however, projects in aspirational districts shall qualify for 75% cover
  • Projects (Greenfield or Brownfield) in Metro cities shall not be eligible for coverage under the scheme.

10

Time period of guarantee cover

  • Upto 2 years from the Date of Commencement of Commercial Operations (DCCO), subject to maximum period of 5 years from the date of first disbursement in case of brownfield projects
  • Upto 5 years from the date of first disbursement, in case of greenfield projects.

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