Azadi ka Amrit Mahatsav

Loan Guarantee Scheme for Covid Affected Sectors (LGSCAS)

Sr. No.




Target Group

Projects in the healthcare sector for setting up of or modernising / expanding

  1. Hospitals / dispensaries / clinics / medical colleges/ pathology labs / diagnostic centres;
  2. facilities for manufacturing of vaccines/oxygen/ventilators/priority medical devices
  3. Public healthcare facilities.

Eligible Borrower

Existing units proposing to expand/diversify/set up eligible projects or new units setting up eligible projects in areas other than the 8 metropolitan cities. The 8 metropolitan cities are municipal areas of Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Mumbai, New Delhi, & Pune cities.


Eligibility Criteria

The eligibility criteria under the Scheme are as under:

  • Total loan requirement upto Rs.100 crore (including fund based and non-fund based facility);
  • Project coming up in a non-Metropolitan area;
  • Loans provided in individual capacity will not be covered under the Scheme.

Scheme Duration

The Scheme would be applicable to all eligible loans sanctioned during the period from May 07, 2021 till March 31, 2022, or till guarantees for an amount of Rs.50,000 Crore are issued under the scheme, whichever is earlier.


Nature of Facility

Term Loan, Cash Credit, Bank Guarantee, Letter of Credit.


Quantum of loan

Composite of both Fund & Non-Fund based funding

  • Minimum: Above Rs.10.00 lakh
  • Maximum: Up to Rs.100.00 crore


  • Term Loan - 25%
  • Cash Credit - 25% (Stocks), Receivables: 40%, Cover period: 90 days.
  • BG/LC – 25%

Margin may be reviewed subject to minimum of 15% for TL and BG/LC and for Cash Credit 15% (stocks), Receivables: 25% with

cover period up to 90 days in following cases:

  • Hospital agrees to maintain escrow a/c for capturing cash flow.
  • The manufacturer is having a firm buying agreement from Govt./hospitals and agrees to maintain the escrow A/c.

Rate of Interest

For MSME units

  • RLLR linked: RLLR + 0.50 + 0.55% (Current Effective rate 6.90%+0.50+0.55%=7.95%)

For Non-MSME units

  •  MCLR Liked: 1 year MCLR + 0.65% (Current Effective rate 7.30%+0.65%=7.95%)

Note: Rate of Interest shall be capped at 7.95 % p.a. till availability of the guarantee cover i.e. maximum for 5 years from the date of first disbursement. Rate of Interest should be reviewed by the sanctioning authority / Branch Manager after expiry of guarantee cover. (In line with Bank’ extant guidelines on rate of interest for respective advances at that time)


Repayment Period for Loan under this scheme

  1. Cash Credit: Yearly Renewal. Repayable on demand.
  2. Term Loan:
  • Maximum period of 10 years including moratorium period.

Maximum moratorium 18 months for construction of Hospital / Nursing Home/ Clinic etc. (6 months in case of purchase of equipment only)

  • Repayment can be equated or customized in alignment with the estimated cash accrual of the unit.

Primary Security

Bank shall have first charge on the assets created/to be created out of the credit extended under LGSCAS. However, NCGTC shall have second charge on the assets financed under the scheme (under both greenfield and brownfield projects). Creation of the charge should be done immediately as per extant guidelines.


Collateral Security

Minimum: 25% SARFAESI enabled collateral security needs to be obtained.

In case, collateral security is obtained then, the guarantee will be available only on the uncovered portion.


Guarantee coverage

The entire funding (without collateral coverage) provided under LGSCAS shall be provided with credit guarantee coverage by NCGTC under the Scheme, as per details below:

  1. For Greenfield projects: 75% of funding
  2. For Brownfield projects: 50% of funding
  3. For all projects in aspirational districts:75% of funding

Time Period of Guarantee Cover

Guarantee under the scheme is available upto maximum 5 years from the date of first disbursement.

  • For brownfield projects: available upto 2 years from the Date of Commencement of Commercial Operations (DCCO), subject to a maximum guarantee period of 5 years from the date of first disbursement. Hence, in such cases, if the commercial operations start say at the end of 2 years, guarantee shall be available upto 2 more years.
  • For greenfield projects: available upto 5 years from the date of first disbursement. Hence, in such cases, guarantee shall continue to be available upto 5 years from the date of first disbursement, even if commercial operations commence earlier.

Guarantee Fee



All service charges

As per extant Service Charges guidelines


Scheme Validity

Sanctions under the scheme is valid till 31.03.2022. However, Disbursement shall be made in stages as per the requirements of the project as decided by the sanctioning authority.