Azadi ka Amrit Mahatsav

Loan Guarantee Scheme for Covid Affected Tourism Service Sector (LGSCATSS)

Sr. No.





To provide guarantee coverage for loans provided by Bank to registered Tourist Guides (recognized/ approved by M/o Tourism and State Govts / UT Administrations) and Travel & Tourism Stakeholders recognized / approved by the Ministry of Tourism, Govt. of India, under the new Loan Guarantee Scheme for the Covid Affected Tourism Service Sector, to discharge liabilities and restart their business affected due to Covid -19 pandemic.


Eligibility Criteria

The following are the eligibility criteria:

  1. Tourist Guides: Recognized/ approved/ registered by Ministry of Tourism and State Govts/ UT Administrations and
  2. *Travel & Tourism Stakeholders: recognized/ approved / registered by the Ministry of Tourism, Govt. of India.

    *“Travel & Tourism Stakeholder” means Tour Operators/ Travel Agents/ Tourist Transport Operators recognized/ approved by the Ministry of Tourism, Govt. of India.

  3. Borrowers could be individuals or Business Enterprises constituted as Proprietorship, partnership, registered company, trusts and LLPs (limited Liability Partnership) or any other legal entity.
  4. Eligible borrowers can avail of assistance either under ECLGS or under LGSCATSS. If the eligible borrower has already availed benefit under ECLGS 1.0 or 3.0, he/she shall have to close/ pay off the dues under ECLGS before applying for coverage under LGSCATSS scheme. Likewise, if an eligible borrower has availed assistance under LGSCATSS, he shall have to close/ pay off the dues under LGSCATSS, before applying for coverage under ECLGS.

Other terms / Conditions:

  • Cases where there is no borrowing relationship with any lender: Tourist Guide and Travel and Tourism Stakeholders not having borrowing relationship with Scheduled Commercial banks (SCBs) but eligible under the scheme shall also be eligible for assistance under the scheme. They may approach any SCB for support under the scheme. (borrower)
  • In case of Existing borrowers: Borrowers having existing relation with a Scheduled Commercial Bank may proceed for borrowing money from that particular bank under this scheme. This mechanism is being opted, to make the Loan process smoother, faster, hassle-free and also to reduce the additional paper work (such as KYC etc.) required by the banks while lending.

Scheme Validity

The scheme is valid till March 31, 2023 or till guarantees for an amount of Rs.250 crore are issued under the scheme, whichever is earlier.


Nature of Facility

Only fund based.

  • Term Loan (TL)

Quantum of loan

As per customer request, subject to maximum amount:

  1. Upto Rs.10.00 lakh each in case of recognized/ approved Travel & Tourism Stakeholders and
  2. Upto Rs.1.00 lakh each for registered Tourist Guides.




Rate of Interest

  • 7.95% p.a.

Repayment Period for Loan under this scheme

  • Maximum repayment period: 5 years including moratorium period.
  • Moratorium period: One year on the Principal amount, during which interest shall be payable.


Bank shall create Hypothecation / mortgage charge on the existing and proposed assets / securities of the borrower financed by the Bank under the Scheme, if any.

Other Security Terms:

  • No additional collateral security to be obtained for loan under this scheme.
  • Bank shall create charge in favour of itself and also on behalf of NCGTC and take all necessary steps to protect the interests of NCGTC.
  • NCGTC shall have second charge on the assets financed under the Scheme, to be created in favour of Bank on behalf of NCGTC within a reasonable period of time from the date of disbursal.
  • Creation of the charge should be done immediately as per extant guidelines. (Charge creation in any case should be done before the account turning NPA for being eligible under this scheme.)

Extent of the Guarantee coverage

NCGTC shall provide 100% Guarantee coverage on the outstanding amount for the credit facility provided to borrowers under this Scheme.


Time Period of Guarantee Cover

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


Nature of guarantee under the scheme

The Credit Guarantee from NCGTC would be unconditional and irrevocable.


Guarantee Fee



Processing fee / foreclosure / prepayment / account closure charges



All other service  Charges

As per extant Service Charges guidelines.