Meanwhile, a number of other banks, including Canara Bank, Indian Overseas Bank, Bank of India, Uco Bank and Indian Bank, have also announced the launch of the emergency lines of credit.
Several public sector banks have rolled out emergency lines of credit with softer terms to borrowers affected by Covid-19, after finance minister Nirmala Sitharaman announced a number of measures to tide over the crisis.
For instance, Bank of Baroda, the country’s second-largest public sector lender, would be offering up to 10% of the existing fund-based working capital limits, subject to a maximum of Rs 200 crore.
Corporate borrowers can avail the credit at the 1-year marginal cost of funds-based lending rate (MCLR) of 8.15% without the standard premium, while for MSMEs, the rate of interest would be at BoB repo-linked lending rate of 8%. All standard accounts as on March 26, 2020, and till the date of sanction are eligible for loan under this scheme. The loan also has a moratorium of up to six months.
Union Bank of India also launched its additional working capital facility to all standard accounts as on February 1, while accounts turning to SMA1/SMA2 post this date will also be eligible. “Maximum 10% of the existing working capital limit will be provided under the Covid Emergency Line of Credit (CELC), with a repayment period of 36 months, including maximum moratorium of 12 months. This credit facility is available at a nil margin with competitive rate of interest (8% fixed rate of interest i.e. 1 year MCLR as on date),” the lender said.
All MSME and agriculture borrowers would be eligible for loans up to Rs 10 crore, and up to Rs 50 crore for others. “We are also working on a scheme to mitigate the Covid effect, especially for small borrowers of micro and small categories,” the bank said.
Meanwhile, a number of other banks, including Canara Bank, Indian Overseas Bank, Bank of India, Uco Bank and Indian Bank, have also announced the launch of the emergency lines of credit. Previously, State Bank of India had announced the launch of its emergency loans.