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EXPLAINED | The credit guarantee schemes announced by FM to ease Covid-induced financial pain

Finance Minister Nirmala Sitharman on 28 June listed out initiatives costing a total of Rs. 6.29 lakh crore. The overwhelming majority of this however, will be spread across the series of credit guarantee schemes spread across sectors. We take a look at the details.

June 28, 2021 / 07:55 PM IST
Finance Minister Nirmala Sitharaman (File image: Reuters)

Finance Minister Nirmala Sitharaman (File image: Reuters)

After the domestic industry increasingly raised demand for another major economic package for the Covid-19 got louder over the past few months, the government has come out with a series of announcements.

Effectively tied together another round of fiscal stimulus into the economy, the announcements come after macro indicators showed demand to have slipped dangerously low in the economy.

The credit guarantee schemes are intended to address this by providing liquidity to key segments of the populations, including small businesses, struggling poor and the worst hit sectors.

Loan Guarantee Scheme for COVID Affected Sectors