Govt announces credit guarantee scheme for healthcare, 26 stressed sectors

Union Finance Minister Nirmala Sitharaman today announced the launch of credit guarantee support scheme for the health care sector and 26 sectors stressed due to COVID-19. She said the entities will get additional credit up to 20 percent of outstanding credit, and the repayment can be done in five years. The repayment process will be covered as 1 year of moratorium and four years of repayment period.

The credit guarantee scheme will be extended to 26 stressed sectors, which were identified in the Kamath Committee, and the healthcare sector. The companies having credit outstanding of Rs 50-500 crore as on February 29, 2020, will be eligible for loans under the scheme. The scheme is available till March 31, 2021. The scheme is expected to provide relief to stressed sectors by helping entities sustain employment and meet liabilities. The MSME sector, which employs millions of workers, will also benefit from the scheme.

Also read: Nirmala Sitharaman Press Conference LIVE Update: FM announces credit guarantee support for 26 stressed sectors

Meanwhile, the government has also extended the Emergency Credit Line Guarantee Scheme for MSMEs, businesses, MUDRA borrowers and individuals (loans for business purposes) till March 31, 2021.

Besides, the government also announced Atma Nirbhar Bharat Rozgar Yojana to incentivise job creation during the COVID-19 recovery. The Centre has promised to provide subsidy by way of EPF contributions for two years in respect to newly eligible employees. This subsidy will be credited upfront in Aadhaar-seeded EPFO accounts. "More than 95% of all establishments and 65% of all employees in the formal sector are estimated to be covered in the first category, wherein EPF contributions will be given by government by way of subsidy support," Sitharaman said.

Also read: Aatmanirbhar Bharat Rozgar Yojana launched to create jobs