Public sector banks have launched a special initiative to help people and small businesses in difficult times due to corona virus. More than a dozen government banks are offering emergency loans.
The public sector banks have taken steps to deal with the prevailing situation in the immediate manner. Private sector leaders like ICICI Bank, HDFC Bank and Axis Bank have not made any concrete plans to provide relief to their customers so far.
Out of a total of 18 public sector banks, at least 15 announced relief schemes for various sectors by Thursday evening. These will give people a little relief in dealing with fresh situations. State Bank of India (SBI) is the first bank to offer such loans. It has opted to avail an emergency loan of a maximum of Rs 100 crore (depending on the size of the business).
Punjab National Bank, Bank of Baroda, Canara Bank, Union Bank of India and Bank of India also announced similar schemes. Besides these, Indian Bank, Bank of Maharashtra, Syndicate Bank, Indian Overseas Bank, UCO Bank and Andhra Bank have also announced relief schemes. These will help people meet their cash needs from lockdown due to corona virus.
Indian Bank has announced five special emergency loan schemes on Wednesday. The bank, will give it to the working class, pensioners, self help groups, MSMEs and large corporates. The existing customers of the bank will be able to avail this scheme.
Customers of the bank can borrow up to 20 times their final salary. The upper limit is Rs 2 lakh. Senior citizens can avail loans up to 15 times their monthly pension under an emergency pension loan. It also has an upper limit of Rs 2 lakh. The duration of such loan is 5 years. It will be available on zero charge. “We have given a long time to repay these loans so that people are convenient,” said Padmaja Chunduru, MD and CEO, Indian Bank. As far as the profession and pensioners are there, it will meet their immediate medical needs (medical) and other expenses,” he said.
Union Bank of India MD and CEO Rajkiran Rai said his bank is also lending to traders whose work has been affected by the lockdown. It will be given up to 10 per cent of their working capital.
Bank of Baroda has launched Baroda Covid Emergency Credit Line. It will provide additional funds up to 10 per cent of the sanctioned loan limit. The interest rate for corporate will be 8.15 per cent without standard premium. MSMEs will get loans at the rate of 8 per cent.
Bank of India has launched the Covid Emergency Support Scheme for Businesses. Under this, corporates can avail 20 per cent additional credit on their existing working capital limit. Under the scheme, the profession will be given a loan up to three times his final salary. There is no payment for six months in these loan schemes. Thereafter, the loan will start to be repaid. Even the government financial institution SIDBI has also announced to provide loans to MSMEs at a concessional rate of 5 per cent.
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