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Indian Overseas Bank introduces special loans for SHGs

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Press Trust of India Chennai
Public sector Indian Overseas Bank

has unveiled a special loan scheme for members of self help groups with a maximum cap of Rs one lakh for a group, the bank said on Tuesday.
The city-based bank said the eligibility of the borrowers is that they need to have a good track record and should have availed minimum two credit loans from the bank.
As per the Bank's criteria only those self help groups whose existing loans are performing as on March 1, 2020 were eligible under this scheme, which is valid till June 30, bank said in a statement.
The maximum loan amount for an individual is Rs 5,000 while for a group it is Rs one lakh, the bank said.
The loan would be sanctioned and disbursed within six working days and they are payable in 30 EMIs after initial moratorium of six months.
The rate of interest for the loans is 9.4 per cent.
"Self Help Group borrowers are an important part of the economy... we are working to best of our ability to extend our support to SHGs in the wake of coronavirus", bank's Managing Director Karnam Sekar said.
"These loans will assist the SHGs pass through the difficult times..", he added.
The borrowers would not be charged with pre-payment charges or processing fee under the special scheme, it said.

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First Published: Apr 28 2020 | 5:07 PM IST

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