In light of the impact assessment of Covid-19 on tourism sector and to revamp the bad shaped tourism related economy, M/o Tourism forwarded a request to M/o Finance to extend financial support to the Tour Operators/ Travel Agents/ Tourist Transport Operators, Regional level Tourist recognized by the Ministry of Tourism and the local guides approved by the State governments/ Union territories in form of credit under the Credit Guarantee Scheme at concessional rates. The purpose of extending financial support/relief to the tourism stakeholders and service providers is to mitigate their hardships arose due to the Covid-19 pandemic and to help them revive their business and livelihood.
- Hon’ble Minister of Finance, in her announcement made on 28.06.2021 stated that credit facility will be provided to the Travel & Tourism Stakeholder and approved Guides (by MoT/ State Govt./ UT Administration) under the Loan Guarantee scheme for Tourism Sector and it would be administered by Ministry of Tourism through National Credit Guarantee Trustee Company Ltd (NCGTC).
- Immediately, after the announcement, Ministry of Tourism, Government of India initiated the action in consultation with the Ministry of Finance, Department of Financial Services, NITI Aayog, NCGTC and IBA for finalization of the scheme guidelines/ SoPs and for allocation of budget, etc. Inputs/suggestions were also taken from the representatives of Tourism Stakeholders Association, Regional level Tourist Guide Associations, NCGTC, IBA and Regional Directors of Domestic India Tourism Offices, M/o Tourism. The guidelines for LGSCATSS was published by NCGTC on their official website on 04.10.2021 and they requested all Scheduled Commercial Banks (SCBs) to participate/ launch the scheme.
- Under this loan guarantee scheme, loan upto Rs.10.00 lakh is being extended to each Tour Operators/Travel Agents/Tourist Transport Operators approved/recognized by the Ministry of Tourism, upto Rs. 1.00 lakh is being extended to each Regional Tourist Guide/ Incredible India Tourist Guide approved/recognized by the Ministry of Tourism and Tourist Guides approved/ recognized by the State Govt./ UT Administration.
- The purpose of the LGSCATSS of the Ministry of Tourism is to provide guarantee coverage for the loans provided by the Scheduled Commercial Banks to the above mentioned beneficiaries, to discharge their liabilities and restart their business affected due to Covid-19 pandemic.
- Validity of the said scheme is till 31.03.2022 or till the guarantee of Rs. 250.00 crores are issued under the scheme, whichever is earlier and would be applicable to all eligible loans sanctioned under the scheme on or after 04.010.2021 (issuance of LGSCATSS guidelines by NCGTC) till 31.03.2022. No guarantee fee will be charged from the MLIs by NCGTC for the credit facilities provided under the Scheme.
- 5 Scheduled Commercial Banks viz. Central Bank of India, Union Bank of India, Karur Vysya Bank, Punjab National Bank and Bank of India have launched this scheme and have directed to their regional offices regarding the same. Other banks are in the process of adopting the scheme.
- Honorable Minister handed over the cheques / sanction letters to the first lot of stakeholders who have been granted the loan/ in-principle approval under the LGSCATSS at an event in The Asoka. Senior officers from the Ministry of Tourism and the participating banks were present in the event..
