Rs 1.1 lakh crore loan guarantee for COVID-19 affected sectors announced by the Centre among other incentives

Union Finance Minister Nirmala Sitharaman on Monday announced several measures to boost the economy that has been adversely affected by the second wave of the COVID-19 pandemic.

According to Sitharaman, there will be Rs 1.1 lakh crore loan guarantee scheme for the COVID-19 affected sectors. A Rs 100 crore loan to the health sector at 7.95 per cent rate was also announced by Sitharaman. Also, Rs 1.5 lakh crore for Emergency Credit Line Guarantee Scheme was announced. The Centre had announced various packages since the outbreak of the COVID-19 pandemic, including the first stimulus package called Atmanirbhar Bharat in May 2020. This included monetary and fiscal support of Rs 21 lakh crore.

A new scheme was also announced to offer up to Rs 1.25 lakh loan to 25 lakh small borrowers at low rates of interest. The tourism sector is also getting incentives – with Rs 10 lakh loan to travel agencies and Rs 1 lakh loan to tourist guides.

All this comes on a day India reported 46,148 new COVID-19 cases and 979 deaths. The daily death count dropped below 1,000 for the first time since April 12.