Loan Guarantee Scheme for Covid Affected Tourism Service Sectors (LGSCATSS) Scheme

Government of India through Ministry of Tourism has introduced the Loan Guarantee Scheme for Covid Affected Tourism Service Sectors (LGSCATSS) to provide 100% guarantee coverage for loans provided by Scheduled Commercial Banks to Registered Tourist Guides (recognized/ approved by Ministry of Tourism and State Govts/UT Administrations) and Travel & Tourism Stakeholders recognized/ approved by the Ministry of Tourism, Govt. of India, for the Covid affected Tourism Service Sector, to discharge liabilities and restart their business affected due to Covid -19 pandemic.

NCGTC has issued operational guidelines on LGSCATSS scheme and for details please visit https://www.ncgtc.in/en/products-n-services/lgscatss

In line with above guidelines, Karur Vysya Bank has launched a new term loan facility under Loan Guarantee Scheme for Covid Affected Tourism Service Sectors (LGSCATSS).

Salient features of the Scheme:

Particulars Details
Facility Term Loan
Purpose Covid affected Tourism Service Sector, to discharge liabilities and restart their business affected due to Covid -19 pandemic.
Eligible Borrowers

The eligibility criteria under the Scheme are as under:

  • Registered Tourist Guides (recognized/ approved by Ministry of Tourism and State Govts/ UT Administrations) and
  • Travel & Tourism Stakeholders recognized/ approved by the Ministry of Tourism, Govt. of India.
  • Loan will be provided to individuals as well as Business Enterprises constituted as Proprietorship, partnership, registered company, trusts and LLPs (limited Liability Partnership) or any other legal entity shall be eligible under the scheme.
  • Borrowers having existing relation with a Bank may proceed for borrowing money under this scheme.
  • If the target beneficiary has already availed benefit under ECLGS 1.0 or 3.0, the beneficiary shall have to close/ pay off the dues under ECLGS, before applying for coverage under LGSCATSS scheme of the Ministry of Tourism.
  • Likewise, if an eligible borrower has availed assistance under LGSCATSS, the borrower shall have to close/ pay off the dues under LGSCATSS, before applying for coverage under ECLGS.
Loan Amount

Travel & Tourism: Maximum Rs.10.00 lakh

Tourist Guide: Maximum Rs.1.00 lakh

Tenor
  • Repayment Period: upto 5 years from the date of first disbursement (Including Moratorium Period).
  • Moratorium period of One year on the Principal amount shall be provided to the borrowers, during which interest shall be payable.
Scheme Period The Scheme is valid till 31st March 2023, or till guarantees for an amount of Rs.250 crores are issued under the scheme, whichever is earlier.
Loan Assessment Assessment as per our Bank Credit Policy guidelines
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