Booster Dose to Economy: Economic Relief Package

1.1 lakh crore loan guarantee scheme for covid affected areas
50 thousand crore loan guarantee to the health sector

Finance Minister Nirmala Sitharaman announced the economic relief package. He has announced a stimulus package of Rs 6, 28,993 crore to boost the economy while dealing with the corona epidemic. Nirmala Sitharaman announced a total of eight relief measures, out of which four are completely new. One of these is related to the health infrastructure sector.

50,000 crore for the health sector
Announcing the economic measures, the Finance Minister said that there is a credit guarantee scheme of Rs 1.1 lakh crore for the sectors affected by Kovid and Rs 50,000 crore has been kept for the health sector.

new credit scheme
Credit guarantee scheme (which is a new scheme) will benefit 25 lakh people. Loans will be given by micro finance institutions to the smallest borrowers. The maximum loan to be given is Rs 1.25 lakh. The focus is not on repayment of old loans but on giving new loans.
The Finance Minister said that the interest rate under the new credit guarantee scheme is 2% lower than the rate set by the RBI with a loan tenure of 3 years. Except for the NPAs to be covered, the focus is on fresh loans, stressed borrowers. He said that the new credit guarantee scheme will reach even the smallest borrowers in the hinterland including small towns.

Visa fee will not be charged from 5 lakh international tourists
The Finance Minister said that once international travel resumes, the first 5 lakh tourists visiting India will not have to pay visa fees. The scheme is applicable till March 31, 2022, or will be discontinued after disbursement of first 5 lakh visas. A tourist can avail the scheme only once.

Travel agencies will get loans
The Finance Minister announced measures to give relief to the tourism sector. Travel agencies will get loans up to Rs 10 lakh, tourist guides will get loans up to Rs 1 lakh.