Finance Minister Nirmala Sitharaman on Monday announced a Rs 1.1 lakh crore loan guarantee scheme for COVID-affected sectors. The scheme would include Rs 50,000 crore loan to the health sector aimed at scaling medical infrastructure targeting underserved areas.

The scheme would entail guarantee cover for expansion and new projects related to health and medical infrastructure in cities other than eight metropolitan cities. For aspirational districts, the guarantee cover would be 75 per cent for both new projects and expansion.

The maximum loan amount under the newly announced scheme would be Rs 100 crore and the duration of guarantee would be up to three years. The interest rate for the loans would be capped at 7.95 per cent.

Sitharaman also said that the guarantee would be provided by National Credit Guarantee Trustee Company Ltd. Under the scheme, loans worth Rs 60,000 crore would be allowed for sectors other than health at an interest rate capped at 8.25 per cent per annum. The normal interest rate without the guarantee cover is 10-11 per cent.