Indian Bank announces additional funding for MSMEs amid coronavirus outbreak; 60 months repayment tenure
Indian Bank has announced additional funding for MSMEs, retail customers, pensioners, and self-help groups.
Amidst the coronavirus outbreak, state-run Indian Bank on Wednesday announced an additional funding facility for large corporates, MSME, retail customers, pensioners, and self-help groups (SHGs).
IND-COVID Emergency Credit Line (IBCECL) will provide additional funding of up to 10 per cent of the working capital limits (both fund-based and non-fund based limits) with a maximum limit of Rs 100 crore, Indian Bank said in a statement.
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.
The loan tenure will be for 36 months with an initial moratorium of up to six months and would carry a fixed interest rate of one-year MCLR. The bank will offer loans to large corporates and medium enterprises that are in the standard category.
Indian Bank is also offering loans to salaried employees up to an amount equal to 20 times of their latest monthly gross salary, with a cap of Rs 2 lakh to meet urgent medical and other expenditure.
It is offering loans to pensioners for an amount equal to 15 times their monthly pension, with a maximum limit of Rs 2 lakh. The repayment time for this loan will be 60 months.
For MSME customers, the bank is giving additional funding of 10 per cent of fund-based working capital (FBWC) limit with maximum limit of Rs 50 lakh. The loan tenure will be of 60 months..
Self-Help Groups (SHGs) are being offered loan of Rs 1 lakh per SHG for a period of 36 months with six months moratorium.
“SHGs have always been an important part of our business and with our initiatives we will ensure that the groups get all the desired support for financial independence. We have made these loans repayable over a longer period of time to give them the flexibility in operations until the business is back on track again,” said Padmaja Chunduru, Managing Director and CEO, Indian Bank.
Indian Bank serves 1.68 lakh SHGs with more than 22 lakh women beneficiaries.