Indian Bank rolls out 5 special emergency loans to Covid 19-hit customers

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Published: March 26, 2020 2:10:45 AM

As a relief to the Covid 19-affected customers, the bank will provide additional funding of up to 10% of the working capital limits (both fund-based and non-fund-based limits) with a maximum limit of Rs 100 crore.

Indian Bank is servicing 1.68 lakh SHGs with more than 22 lakh women beneficiaries. Indian Bank is servicing 1.68 lakh SHGs with more than 22 lakh women beneficiaries.

Chennai-based public sector lender Indian Bank on Wednesday announced its intention to help out its Covid 19-hit customers through five special emergency loans to large corporates, medium enterprises, MSMEs, salaried and pensioners.

As a relief to the Covid 19-affected customers, the bank will provide additional funding of up to 10% of the working capital limits (both fund-based and non-fund-based limits) with a maximum limit of Rs 100 crore. Large corporates and medium enterprises that are in the standard category would be eligible for this loan. The loan tenure will be for 36 months with an initial moratorium of up to 6 months and would carry fixed interest rate of 1 year MCLR. All other charges are waived, said a release.

Padmaja Chunduru, MD & CEO, Indian Bank, said: “In these challenging times, Indian Bank is committed to stand by its customers. We expect that these credit lines will meet the immediate liquidity requirements of businesses.”

Besides, under yet another scheme, an additional funding of 10% of FBWC limits with maximum of Rs 50 lakh, available for all micro and small enterprises and up to 60 months of tenure. This is intended to meet the liquidity issues faced by the micro and small enterprises.

Indian Bank is servicing 1.68 lakh SHGs with more than 22 lakh women beneficiaries. To help them tide over the crisis, it has launched a new loan scheme under which each member can avail a soft loan of Rs 5,000, that is, Rs 1 lakh per SHG. The loan is for 36 months with 6-month moratorium.

SHGs have always been an important part of our business and with our initiatives, we ensure that the group gets 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 business is back on track again,” she said.

For the salaried, Bank is offering employees an amount up to 20 times the latest monthly gross salary, subject to a maximum of Rs 2 lakh. This is to meet urgent medical and other expenditure. Concessional interest and all charges waived.

For pensioners, the bank will offer 15 times monthly pension, subject to a maximum of Rs 2 lakh, with 60-month repayment. “With the salaried class and pensioners, it is more a line to meet their immediate requirements,” she added.

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