IOB rolls out special credit facility for agri borrowers

State-run Indian Overseas Bank (IOB) on Wednesday rolled out a special credit facility for its existing borrowers from the agriculture sector and allied activities, which have been impacted by the coronavirus pandemic.

The working capital demand loan is available to all its existing borrowers from poultry, dairy, fisheries and other allied activities and infrastructure activities such as cold storage and rural godowns, the bank said in a release.

The bank will be offering loans of 10 per cent of the existing fund based working capital limit with a maximum of Rs 10 crore to the poultry sector.

For other allied activities, it is offering Rs 2 crore of loans.

"The COVID-19 pandemic has caused severe economic implications to the agriculture sector among others. These loans will encourage more people to run their business for greater good of the society," the bank's Managing Director and CEO Karnam Sekar said.

The loans will be given for 12 months, which includes the first six months as moratorium, to accounts that are standard as of March 2020.

The bank said borrowers can submit their request to the branch directly or through e-mail and there will be no processing fees or prepayment penalty.