India, April 8 -- The Government is considering a INR 2.5 lakh crore credit guarantee scheme to support businesses, especially MSMEs impacted by the West Asia crisis, sources said.Under the scheme, a credit guarantee of about 90 per cent on loans of up to INR 100 crore would be provided to lenders in case of default by borrowers due to the ongoing US-Iran conflict.

The guarantee on bank loans would be provided by the National Credit Guarantee Trustee Company (NCGTC), a wholly-owned subsidiary of the Government. The Government would have to provide about INR 17,000 crore to INR 18,000 crore for the scheme. Sources said the scheme was a huge success during the COVID-19 pandemic and helped many businesses across various sectors to stay aflo...