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Indian Bank announces special emergency loan schemes to address lockdown

It will be the second bank after State Bank of India (SBI) to come out with such schemes

T E Narasimhan  |  Chennai 

Indian bank, PSB,

Indian Bank on Wednesday announced five special emergency loan schemes for customs to cushion effect of economic slump and lockdown. It will be the second bank after State Bank of India (SBI) to come out with such schemes.

IND- COVID Emergency Credit Line (IBCECL) will provide additional funding of upto 10 per cent 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 tenor 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 the Bank.

The second scheme, IND- MSE COVID Emergency Loan— (INDMSE-CEL) will give additional funding of 10 per cent of FBWClimits with maximum Rs 50 lakh, available for all Micro and Small Enterprises and upto 60 months tenor. This is intended to meet the liquidity issues faced by Micro and Small Enterprises during the challenging time now.

The Chennai-based public sector is servicing around 1.68 lakh SHGs with more than 22 lakh women beneficiaries. To help them tide over the crisis, Indian Bank has launched the SHG-COVID - SAHAYA LOAN . Under this each member can avail a soft loan of Rs. 5000 I.e., Rs. 1 lakh per SHG. The loan is for 36 months with 6 months moratorium.

IND-COVID Emergency Salary Loan: to salaried employees upto an amount equal to 20 times latest monthly gross salary subject to maximum of Rs 2 lakh. This is to meet urgent medical and other expenditure. Concessional interest and all charges waived.

IND COVID- Emergency Pension Loan: 15 times monthly pension subject to maximum of Rs 2 lakh, with 60 months repayment. Concessional interest and all charges waived.

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. SHGs has 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 S period of time to give them the flexibility in operations until business is back on track again. With salaried class and the pensioners, it is more a line to meet their immediate requirements.”

First Published: Wed, March 25 2020. 18:13 IST