Banks launch special emergency loans for customers amid coronavirus crisis
In a bid to help people and businesses affected in the wake of coronavirus outbreak, state-owned lenders including Indian Bank, Union Bank of India, and Bank of Baroda on Wednesday announced special emergency loan products.
Besides, other public sector lenders -- Canara Bank, UCO Bank and Indian Overseas Bank -- too announced emergency credit line for customers.
Public sector banks with about 80 percent of banking operation have taken steps to ensure the safety of its staff and uninterrupted banking services to customers.
In these challenging times, the bank is committed to stand by its customers. Keeping in view the hardships faced by various sectors of the economy, we have launched products to take care of immediate liquidity requirement of businesses and retail customers," Indian Bank Managing Director Padmaja Chunduru told PTI.
"In wake of #coronavirus outbreak, #UnionBankofIndia unstintingly supports all its existing customers with the launch of Covid Emergency Line of Credit (CELC) which provides additional credit facilities to tide over liquidity issues," Union Bank of India said in a tweet.
Another state-run lender Bank of India too announced emergency line of credit for borrowers. Last week, the country's largest lender State Bank of India also announced an emergency credit line to meet any liquidity mismatch for its borrowers.
Bank of Baroda said it has set up an emergency credit line to provide funds to its existing MSME and corporate borrowers impacted by the outbreak of coronavirus.
This follows a similar additional funding facility announced by the country's largest lender State Bank of India for its borrowers, last week.
"Canara Bank announces special Loan schemes for our MSME/Corporate/Business/ Agri & Retail Customers, to tide over the liquidity / Cash flow mismatches in the wake of outbreak of COVID -19," the bank tweeted.
Indian Overseas Bank launched MSME Product "COVID 19 Line of Support Scheme" for all MSME customers.
The IND- COVID Emergency Credit Line (IBCECL) for large corporates will provide additional funding of up to 10 percent of the working capital limits (both fund-based and non-fund based limits) with a maximum limit of Rs 100 crore.
To support the women workforce, the bank has launched the SHG-COVID - SAHAYA LOAN. Under this each member can avail a soft loan of Rs 5000 up to maximum of Rs 1 lakh per SHG. The loan is for 36 months with six months moratorium.
Indian Bank is servicing 1.68 lakh SHGs with more than 22 lakh women beneficiaries and the product will help them tide over the crisis, Padmaja said.
For the salaried class, the bank has designed IND-COVID Emergency Salary Loan under which one can avail loan up to an amount equivalent to 20 times latest monthly gross salary subject to max of Rs 2 lakhs.
The bank is promoting digital payments such as mobile banking, internet banking, debit and credit cards instead of using cash which may require them to go to crowded places for paying bills.
(Edited by Evelyn Ratnakumar)