FM’s Economy Booster- Key Highlights
Finance Minister Nirmala Sitharaman addressed a press conference about eight COVID-19-related relief measures today.
TNI Bureau: Finance Minister Nirmala Sitharaman addressed a press conference about eight COVID-19-related relief measures today.
Finance Minister Nirmala Sitharaman stated in November last year, when presenting stimulus measures under Atmanirbhar Bharat Abhiyaan 3.0, that the government and Reserve Bank of India have jointly approved stimulus measures totaling Rs 29,87,641 crore to stimulate the economy.
Healthcare loan guarantee scheme
Sitharaman unveiled a loan guarantee scheme of Rs 1.1 lakh crore for COVID-affected sectors. She said “Of this, Rs 50,000 crore cover will be for healthcare sector for scaling up medical infrastructure. “
The Minister stated that non-metros medical infrastructure will be covered by the Rs 50,000 crore health sector guarantee. In addition, Rs 60,000 crore would be allocated to other sectors. For the health sector, the maximum loan amount would be Rs 100 crore, with a maximum interest rate ceiling of 7.95 percent. Interest rates in other sectors are restricted at 8.25 percent.
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Loan guarantee for Scheduled Commercial Banks
According to the government, Scheduled Commercial Banks would be given a guarantee for loans to new or existing NBFC-MFIs on loans of up to Rs 1.25 lakh to roughly 25 lakh small borrowers. The interest rate on bank loans has been limited at MCLR + 2%.
Credit guarantee scheme to Microfinance Institutions
The finance minister announced a credit guarantee plan that will allow microfinance institutions to loan approximately 25 lakh people. The interest rate on bank loans will be regulated at MCLR + 2% under this plan. Three years is the longest loan term, with a maximum loan amount of Rs 1.25 lakh.
National Credit Guarantee Trust
Through the National Credit Guarantee Trust, Sitharaman offered a guarantee of up to 75 percent of the default amount for up to three years. The FM stated that there will be no guarantee fee. Guarantee cover for MLI financing to MFIs/NBFC-MFIs till March 30, 2022, or until guarantees of Rs 7,500 crore are granted, whichever is earlier.
Relief for the Tourism Sector
More than 11,000 registered tourist guides, travel and tourism stakeholders would receive financial assistance, according to the Finance Minister. Loan guarantees of up to Rs 10,00,000 will be given to tourism stakeholders, while loan guarantees of up to Rs 1,000,000 would be given to tourist guides. The system will encompass 10,700 regional level tourist guides recognized by the Ministry of Tourism as well as state government-approved tourist guides.
Working capital/personal loans will be offered to people in the tourism sector under a new loan guarantee programme for COVID-affected industries to discharge liabilities and relaunch businesses that have been impacted by COVID-19.
Loans will be guaranteed 100 percent up to the following limits: Rs 10 lakh for TTS, Rs 1 lakh for regional or state-licensed tourist guides
Free Tourist Visa
Nirmala Sitharaman said that the first 5 lakh tourist visas visiting India will be free of charge, costing the government Rs 100 crore.
Atmanirbhar Bharat Rozgar Yojna to be extended
The finance minister said that the Atmanirbhar Bharat Rozgar Yojna would be extended till March 31, 2022.
The Ministry of Finance announced a three-month extension of its Rs 3 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) last month on May 30, prompting today’s news conference.