Govt announces loan guarantee scheme for tourist guides

Finance Minister Nirmala Sitharaman today announced financial support to more than 11,000 registered tourist guides/travel and tourism stakeholders. Under new Loan guarantee scheme for COVID affected Sectors, working capital/personal loans will be provided to people in tourism sector to discharge liabilities and restart businesses impacted due to COVID-19

The scheme will cover 10,700 regional level tourist guides recognised by Ministry of Tourism and Tourist Guides recognised by the State Governments and Travel and Tourism Stakeholders (TTS) recognized by Ministry of Tourism

Loans will be provided with 100% guarantee up to the following limits:

-Rs. 10,00,000 for Travel and Tourism Stakeholders ( per agency)

-Rs. 1,00,000 for tourist guides licenced at regional or state level

-No processing charges, waiver of foreclosure/prepayment charges and no additional collateral requirement

The scheme to be administered by the Ministry of Tourism through NCGTC.

Also, to boost the pandemic-hit tourism sector, the government said first 5 lakh tourists who come to India will not have to pay visa fees. The scheme is applicable till March 31, 2022, or will be closed after distribution of first 5 lakh visas. One tourist can avail the benefit only once.

Among other measures, the finance minister today said the government will expand central guarantees on loans to businesses to ₹4.5 lakh crore from an earlier limit of ₹3 lakh crore as part of steps to support businesses hit by coronavirus pandemic.

The Emergency Credit Line Guarantee Scheme (ECLGS), launched last year, has helped cash-starved small businesses to raise funds during the pandemic lockdown for working capital and to meet their orders.