Indian government likely to roll out ₹2.5L/cr credit guarantee scheme
Business
The Indian government is likely to roll out a massive ₹2.5 lakh crore credit guarantee scheme to help industries hit hard by the West Asian crisis: think aviation and MSMEs (small businesses).
This new move builds on the COVID-era ECGLS, promising lenders a 90% safety net if borrowers can't pay back.
No extra collateral, 1-year moratorium
If you're in an affected sector, you won't need extra collateral to get these loans, and interest rates are capped at 9.25% for banks and 14% for NBFCs.
There's even a one-year break before you have to start paying back the principal.
The scheme is set to run for four years once it gets Cabinet approval, aiming to keep stressed industries afloat during tough times.