Loan Guarantee Scheme for COVID Affected Sectors (LGSCAS)

Target Group
  • Hospitals / Dispensaries / Clinics / Medical Colleges / Pathology Labs / Diagnostic centres;
  • Manufacturers of vaccines/ oxygen/ ventilators/ priority medical devices      and
  •  Public healthcare facilities.

(Greenfield / Brownfield Projects located/to be located in Metro Cities are not eligible under the Scheme. At present there are 8 Metro cities namely Chennai, New Delhi, Mumbai, Kolkata, Bangalore, Hyderabad, Ahmedabad and Pune. )


To provide finance in areas other than 8 Metro Cities, for set up of or modernizing /expanding of the following:

  • Hospitals / Dispensaries / Clinics / Medical Colleges / Pathology Labs / Diagnostic centres
  • Facilities  for manufacturing of vaccines/ oxygen/ ventilators/ priority medical devices
  • Public healthcare facilities

Eligibility Criteria

Constitution of borrower

Proprietorship Firm/ Partnership Firm/ Trust/ Society/Public Ltd / Private Ltd.

Qualification of borrower

  • At-least one of the Promoters/ Director, should have requisite qualification in the respective branch of medical science from a recognized University or
  • Any degree in physiotherapy/ radiology etc. or  
  • Professionals / qualified doctors should be a part of management of the Hospital/Nursing Home / Pathological /Diagnostic Canters.

The Competent Authority may consider waiver of this condition.


Business unit should have required approvals/ registrations / permit / licence, wherever applicable, from the statutory/ regulatory authority.


is mandatory in case of all existing units operating for more than one Financial Year

Financial statements

such as ABS/PBS, Account Statements etc should be verified to ascertain the activity level of the unit.

Existing unit should not have incurred losses in past 2 years

Nature of Facility

Fund Based/Non Fund Based Term Loan, Cash Credit, Bank Guarantee (P/F, Bid bond) and Letter of Credit/Standby Letter of Credit.

Maximum exposure

Maximum exposure per project is limited to Rs.100 crore (both fund based and non-fund based included).

  • Term Loan - 25%
  • Cash Credit - 25% (Stocks), Receivables: 40% Cover period: 90 days.
  • BG/LC – 25% cash margin

Competent Authority may allow reduction in Margin.

Rate of Interest (ROI)

Within validity period of NCGTC guarantee cover

ROI is capped at 7.95% p.a. following NCGTC Guidelines

After the expiry of NCGTC Guarantee Cover

The ROI to be charged as per :

  • Prevailing Guidelines under Baroda COVI Healthcare Scheme or
  • Prevailing guidelines applicable for MSME/Large Corporate entities whichever is lower.

(Concession may be allowed by competent authority)

Primary Security
  • Bank shall have first & exclusive charge on the assets created/to be created out of the credit extended under the scheme.
  • NCGTC shall have second charge on the assets financed under the Scheme.

Extent of Guarantee NCGTC cover

  • Eligible Greenfield projects in any area & Brownfield projects in 112 Aspirational Districts (112 Districts as notified by Niti Aayog) : 75%
  • Eligible Brownfield projects in areas other than Aspirational Districts: 50%

NCGTC cover is available on the unsecured portion of the outstanding amount under the LGSCAS Scheme.

Tenor of Guarantee cover by NCGTC

  • Greenfield projects: Upto 5 years from the date of first disbursement.
  • For Brownfield projects:Upto 2 years from the Date of Commencement of Commercial Operations (DCCO), subject to maximum period of 5 years from the date of first disbursement.

NCGTC Guarantee Fees Payable to NCGTC

No guarantee fees is payable to NCGTC for LGSCAS.

Collateral Security

Minimum SARFEASI enabled tangible collateral security of 25% to be obtained from all the MSME borrowers. However, this condition may be waived in following cases:

In case tenor of loan is within validity period of guarantee cover under LGSCAS Value/Cost of primary security in the form of land & building along with amount of guarantee cover is equal to or more than 100 % of the exposure.
In case, the tenor of loan is more than the tenor of the guarantee cover under LGSCAS Value/Cost of primary security in the form of land & building along with amount of guarantee cover is equal to or more than 125 % of the exposure.

For large corporate borrowers, sanctioning authority may decide   collateral security coverage on case to case basis.


In all cases (other than proprietorship concerns), personal guarantee of the promoters / partners/ directors of the unit is mandatory.

The waiver of Personal guarantee, may be allowed by the competent authority.

Repayment Period
  • Repayment period of loans is fixed based on repayment capacity assessed as per DSCR subject to maximum period of 10 years including moratorium period of maximum 24 months for green field units and maximum period of 5 years including moratorium of maximum 24 months for brownfield units.
  • However, the Door to Door Tenor of fund based and/or non-fund based facility covered under LGSCAS should preferably not exceed 5 years from date of first disbursement matching with maximum tenor of guarantee cover.

  • Maximum moratorium 24 months for green field/Brown field projects.
  • Interest to be serviced on a monthly basis during the moratorium period

Service Charges
  • Upfront Fee/ Processing Fee/ Inspection Charges: 50% concession.
  • BG/LC Charges : 50% concession
  • Other service charges like Mortgage Charges / Documentation Charges / Out of Pocket expenses like Credit Bureau Charges etc: Applicable as per Bank Guidelines. Concessions in Service Charges may be allowed by competent authority.

Pre-Payment Penalty & Penal Interest

As per Bank’s extant Guidelines

Other Conditions

Ring fencing of cash flows shall be ensured by routing all cash flows through ESCROW account arrangement.

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