Govt plans Rs 2.5 lakh cr credit guarantee scheme for businesses affected by West Asia crisis

NEW DELHI: (Apr 7) The government is considering a Rs 2.5 lakh crore credit guarantee scheme to support businesses, especially MSMEs impacted by the West Asia crisis, sources said.

Under the scheme, a credit guarantee of about 90 per cent on loans of up to Rs 100 crore would be provided to lenders in case of default by borrowers due to the ongoing US-Iran conflict.

The guarantee on bank loans would be provided by the National Credit Guarantee Trustee Company (NCGTC), a wholly-owned subsidiary of the government.