Govt to extend loan scheme for building healthcare, medical infrastructure

The Centre will extend the credit guarantee scheme for building healthcare and medical infrastructure by three months to June 2022.

Urging the industry to avail Loan Guarantee Scheme for Covid Affected Sectors (LGSCAS) at the earliest, Finance Secretary TV Somanathan said the scheme will be extended by another three months to June 2022.

The LGSCAS provides a guarantee of 50 per cent for brownfield projects and 75 per cent to greenfield projects for loans sanctioned up to Rs 100 crore to set up facilities at urban or rural locations. The guarantee cover for both brownfield expansion and greenfield projects in aspirational districts is 75 per cent. Loans would be extended for up to three years, and interest rate under the scheme is capped at 7.95 per cent. The scheme would be applicable to all eligible loans sanctioned up to the due date or until an amount of Rs 50,000 crore is sanctioned, whichever is earlier. Somanathan urged stakeholders to avail the benefit of the scheme as it has a time limit.

“As of now, it will be extended to June 2022. So I would request you to expedite your survey of which districts or places in the North-East are there where the private sector is interested to start something in these tier 2 and other towns, and expedite the applications to the bank (to avail the scheme) before it crosses the revised deadline of June 30,” he said.

Such loans are offered at a much lower interest rate and banks also get a concessional refinancing facility from the Reserve Bank of India for these loans, he said.