Quick Summary
Cabinet approves Loan Guarantee Scheme for Covid Affected Sectors (LGSCAS) and to enhance the corpus of Emergency Credit Line Guarantee Scheme (ECLGS) On account of the disruptions caused by the second wave of COVID 19 specially on healthcare sector, the Union Cabinet, chaired by the Prime Minist
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FAQ :
LGSCAS is a new scheme approved by the Union Cabinet to provide financial guarantee cover for brownfield expansion and greenfield projects related to health and medical infrastructure, with funding up to £50,000 crore.
The scheme aims to enhance healthcare infrastructure in response to the COVID-19 pandemic, partially mitigate credit risk for lenders, and facilitate bank credit at lower interest rates, especially in underserved areas.
The Cabinet has approved additional funding of up to £1,50,000 crore under the ECLGS.
LGSCAS provides a 50% guarantee for brownfield projects and 75% for greenfield projects for loans up to £100 crore, excluding loans set up in 8 Metropolitan Tier 1 cities. For aspirational districts, the guarantee is 75% for both project types.
Loans sanctioned up to 31.03.2022, or until the £50,000 crore amount is sanctioned, whichever is earlier, are eligible under LGSCAS.
LGSCAS is expected to shore up healthcare infrastructure and create employment, while the enhanced ECLGS aims to provide much-needed relief to various business sectors, incentivising lending and supporting economic revival.
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