FHRAI says Rs 60,000 crore loan guarantee scheme for Covid affected sectors not notified in over a month, asks FM to take cognizance

The Federation of Hotel and Restaurant Associations of India (FHRAI) stated that it had addressed a letter to Finance Minister Nirmala Sitharaman demanding her involvement in declaring the Rs 60,000 crore sanctioned under the Loan Guarantee Scheme for Covid-affected sectors. The announcement was made by the finance minister on June 28, according to FHRAI, who voiced disappointment that more than a month has gone since the initiative was announced, but no one has been alerted.

The FHRAI has also expressed the industry’s dissatisfaction with banks and financial institutions for failing to complete loan applications under ECLGS 3.0 and loan restructuring applications.

‘They are utterly unaware that the Finance Ministry fully insures the loans under ECLGS and that banks and NBFCs have nothing to lose by providing loans to clients at a low-interest rate.’ We encourage the finance minister to intervene immediately to provide relief to the highly disadvantaged MSMEs by providing low-interest loans,” he added.