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FM Nirmala Sitharaman announces Rs 1.1 lakh crore loan guarantee scheme for Covid-hit sectors

In a press conference on Monday, Finance Minister Nirmala Sitharaman announced a Rs 1.1 lakh crore loan guarantee scheme for sectors affected by the Covid-19 pandemic.
Finance Minister Nirmala Sitharaman on Monday announced a credit guarantee scheme worth Rs 1.1 lakh crore for Covid-affected sectors. The government has earmarked Rs 50,000 crore out of this for scaling up the healthcare sector, she added.
Addressing a press conference in New Delhi on Monday, Sitharaman said as many as 25 lakh people stand to benefit from the credit guarantee scheme.
“Loans will be given to the smallest borrowers by micro-finance institutions. A maximum of Rs 1.25 lakh will be lent. The focus is on new lending and not on repayment of old loans,” Sitharaman told reporters.
 She also said that the interest rate on the new credit guarantee scheme is two per cent below the RBI prescribed rate, with a loan duration of three years.
The focus will be on new loans and stressed borrowers, with the exception of NPAs (non-performing assets), added Union Finance Minister Nirmala Sitharaman.

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Sitharaman went on to say that the new credit guarantee scheme will reach out to the “smallest of the small borrowers” in the hinterland, including in small towns.
 In addition to the loan guarantee scheme, the government has allocated Rs 23,220 crore for expanding healthcare infrastructure, with a sharp focus on child and paediatric care.
Other announcements by Nirmala Sitharaman:
* Travel agencies can now get a retail loan of Rs 10 lakh, while tour guides will be eligible for a loan of Rs 1 lakh.
* First five lakh tourist visas will be issued free of cost.
* Overall cap of the Emergency Credit Line Guarantee Scheme (ECLGS) scheme is to be raised to Rs 4.5 lakh crore from the earlier Rs 3 lakh crore.
* Rs 19,041 crore was allocated for expanding the reach of broadband to every village in the country.
* DISCOMs to get Rs 3.03 lakh crore to upgrade existing systems and create more infrastructure.
* Production-linked incentive scheme for large-scale electronics manufacturing has been extended for another year.
* Corpus to allow National Export Insurance Account (NEIA) to underwrite an additional Rs 33,000 crore of project exports over five years.
* Rs 77.45 crore to revive the North Eastern Regional Agriculture Marketing Corporation (NERAMAC).

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