A 1.1 Lakh Cr Loan Guarantee Scheme for COVID Affected Sectors
Health Sector: Rs. 50,000 crore
- Aimed at scaling medical infrastructure targeting underserved areas.
- Guarantee cover for expansion and new projects related to health/medical infrastructure in cities other than 8 metropolitan cities. The Guarantee coverage is 50% for expansion & 75% for new projects and for Aspirational Districts, guarantee cover of 75% for both new projects and expansion.
- Maximum loan is of Rs. 100 crore; Guarantee duration: Up to 3 years with Interest rate capped at 7.95%
- Guarantee by National Credit Guarantee Trustee Company Limited.
Other Sectors: Rs. 60,000 crore
- Interest rate capped at 8.25% p.a.
- Decisions at a later stage based on evolving needs. Normal interest without guarantee cover is 10-11%
B Additional 1.5 lakh Cr for Emergency Credit Line Guarantee Scheme:
Launched as part of Atma Nirbhar Bharat Package in May, 2020. ECLGS-1.0, 2.0 and 3.0 have resulted in credit disbursal of 2.69 lakh Crore to 1.1 crore units by 12 Public Sector Banks, 25 Private Sector Banks, and 31 Non Banking Financial Companies. Contact intensive sectors already covered and shall be continued. So far, Rs 4,000 crore has been given to these sectors through this window.
Limit of admissible guarantee and loan amount proposed to be increased above existing level of 20% of outstanding on each loan. Sector wise details will be finalized as per evolving needs. The Overall cap of admissible guarantee to be raised from Rs. 3 lakh crore to Rs. 4.5 lakh crore.
C Credit Guarantee Scheme to Facilitate Loans to 25 Lakh Persons Through Micro Finance Institutions (MFIs):
Guarantee will be provided to Scheduled Commercial Banks for loans to new or existing NBFC-MFIs or MFIs for on lending upto Rs 1.25 lakh to approximately 25 lakh small borrowers. The Interest Rate on Loans from banks to be capped at MCLR plus 2% and Maximum loan tenure is 3 years, 80% of assistance to be used by MFI for incremental lending, interest at least 2% below maximum rate prescribed by RBI
Focus on new lending, not repayment of old loans. Loans to borrowers to be in line with extant RBI guidelines such as number of lenders, borrower to be member of JLG, ceiling on household income & debt.
All borrowers (including defaulters upto 89 days) eligible. The Guarantee cover for funding provided by MLIs to MFIs/NBFC-MFIs till March 31, 2022 or till guarantees for an amount of Rs.7,500 crore are issued, whichever is earlier. Guarantee upto 75% of default amount for upto 3 years through National Credit Guarantee Trustee Company (NCGTC) and No guarantee fee to be charged by NCGTC.
D. Extension of Atmanirbhar Bharat Rozgar Yojana:
The Scheme was Launched on 1st Oct, 2020 for Incentivizing employers for creation of new employment, restoration of loss of employment through EPFO. Approved outlay Rs. 22,810 crore for 58.50 lakh estimated beneficiaries. Last date for registration is 30.06.2021.
Subsidy provided for two years from registration for new employees drawing monthly wages less than Rs. 15000 for:
- Both Employer’s and Employee’s share of contribution (total 24% of wages) for establishment strength upto 1000 employees.
- Only Employee’s share (12% of wages) in case of establishment strength of more than 1000
Benefit of Rs. 902 Cr given to 21.42 lakh beneficiaries of 79,577 establishments till 18.06.2021. The Scheme extended from 30.6.2021 to 31.03.2022.
E. Additional Subsidy for DAP & P&K fertilizers (Announced Earlier):
Record procurement of 432.48 Lakh MT of wheat in Rabi Marketing Season (RMS) 2021-22 (against 389.92 Lakh MT in RMS 2020-21). Rs 85,413 Crore paid to farmers. Existing NBS subsidy was Rs.27,500 crores in FY 2020-21 which has been increased to Rs. 42,275 crore in FY 2021-22 • Additional amount of Rs.14,775 crore to be provided. This includes Rs.9,125 crore additional subsidy for DAP and Rs.5,650 crore additional subsidy for NPK based complex fertilizer.
F. Extension of Pradhan Mantri Gareeb Kalyan Anna Yojana (PMGKAY) (Announced Earlier):
PMGKAY was launched on 26th March 2020 to ameliorate the hardships faced by the poor due to economic disruption caused by COVID 19 Pandemic. The scheme was launched initially for the period from April to June 2020. However, keeping in view the need for continuous support to the poor and the needy, the scheme was extended till November 2020. The total cost of the scheme in 2020-21 was Rs. 133,972 crore. In the wake of the second wave of COVID-19, the scheme was relaunched in May 2021 to ensure food security of the poor/vulnerable. 5 kg of food grains will be provided free of cost to NFSA beneficiaries from May to November 2021 • Estimated financial implications are Rs 93,869 cr, bringing the total cost of PMGKY to Rs 2,27,841 Crore.