Loan Guarantee Scheme for Covid Affected Tourism Service Sectors

Loan Guarantee Scheme for Covid Affected Tourism Service Sectors (LGSCATSS)

Government of India through Ministry of Tourism, has introduced the Loan Guarantee Scheme for Covid Affected Tourism Service Sector (hereinafter referred to as the Scheme) to provide guarantee coverage to eligible lending institutions for their loans to registered Tourist Guides (recognized/ approved by Ministry of Tourism, Govt. of India and State Govts/ UT Administrations) and Travel & Tourism Stakeholders recognized/ approved by the Ministry of Tourism, Govt. of India.

Scheme Guidelines:

Sl.No

Parameters

Features

1

Purpose

To provide relief to eligible Travel & Tourism Stakeholders viz. by way of need based financial assistance, who have been adversely impacted by the Covid -19 pandemic.

2

Eligibility Criteria

· Registered Tourist Guides recognized/approved by Ministry of Tourism and State Governments/Union Territory Administrations and Travel & Tourism stakeholders (Tour Operators/ Travel Agents/ Tourist Transport Operators) recognized/ approved by the Ministry of Tourism, Govt. of India.

· Individuals as well as Business Enterprises constituted as proprietorship, partnership, registered company, trusts and LLPs (Limited Liability Partnership) or any other legal entity shall be eligible under the scheme.

· Eligible borrowers can avail of the assistance either under ECLGS or under LGSCATSS. If the eligible borrower has already availed benefit under ECLGS 1.0 or 1.0 (Extension) or 3.0 or 3.0 (Extension), in such cases, due under ECLGS to be closed/paid off before applying for coverage under LGSCATSS scheme.

· Similarly, if an eligible borrower has availed assistance under LGSCATSS, then due under LGSCATSS to be closed/paid off before applying for coverage under ECLGS.

· Borrowers having banking relationship with other bank(s) are not eligible for finance under the scheme. Such borrowers to apply for need based credit facilities with the existing banks.

3

Quantum

· Maximum of Rs 10.00 lakh for recognized/ approved Travel & Tourism Stakeholders.

· Up to Rs 1.00 lakh for registered Tourist Guides.

4

Tenure

Up to 5 years from the date of first disbursement including moratorium period of one year. Interest shall be payable during moratorium period.

5

Scheme validity

The scheme is valid till 31st March, 2022, or till guarantees for an amount of Rs. 250 crores are issued under the scheme, whichever is earlier.

6

Nature of facility

Term loan

7

Rate of Interest

Interest Rate on loans covered under LGSCATSS would be charged as per the RBI guidelines and capped at 7.95 % p.a. till availability of the guarantee cover.

8

security

· Bank shall create charge on the existing and proposed assets/securities.

· Bank shall create charge in favour of itself and also on behalf of NCGTC and take all necessary steps to protect the interests of NCGTC

· No requirement of additional collateral security.

9

Guarantee fee

Nil

10

Guarantee Coverage

NCGTC shall provide 100% Guarantee coverage.

11

Processing fee/prepayment charges

There will be no processing charges, no foreclosure / prepayment charges.

12.

NCGTC guidelines

Please visit https://www.ncgtc.in/en/products-n-services/lgscatss