Loan Guarantee Scheme for Covid Affected Sectors (LGSCAS)
Projects in the healthcare sector for setting up of or modernising / expanding
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.
The eligibility criteria under the Scheme are as under:
The Scheme would be applicable to all eligible loans sanctioned during the period from May 07, 2021 till March 31, 2023, 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
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:
Rate of Interest
For MSME units
For Non-MSME units
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
Maximum moratorium 18 months for construction of Hospital / Nursing Home/ Clinic etc. (6 months in case of purchase of equipment only)
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.
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.
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:
Time Period of Guarantee Cover
Guarantee under the scheme is available upto maximum 5 years from the date of first disbursement.
All service charges
As per Bank’s extant Service Charges guidelines
The Scheme would be applicable to all eligible loans sanctioned during the period from May 07, 2021 till March 31, 2023, or till guarantees for an amount of Rs.50,000 crore are issued under the scheme, whichever is earlier.
Last date of first disbursement shall be within 3 months of sanction of facility, however, loans which were sanctioned prior to issuance of these revised guidelines shall be allowed additional time upto 3 months from the date of issue of the guidelines for first disbursement.