Indian Bank Offered Funding for MSMEs On COVID-19 Outbreak
Indian Bank has announced an additional funding facility for large corporates, Micro, Small and Medium Enterprises (MSME), retail customers, pensioners, and self-help groups (SHGs).
As per the statement issued by the bank, on Wednesday, IND-COVID Emergency Credit Line (IBCECL) will provide additional funding of up to 10 per cent of the working capital limits (both fund-based and non-fund-based limits) with a maximum limit of Rs 100 crore.
The bank will offer loans to large corporates and medium enterprises that are in the standard category. The loan tenure will be for 36 months with an initial moratorium of up to six months and would carry a fixed interest rate of one-year MCLR.
The bank is giving additional funding of 10 per cent of fund-based working capital (FBWC) limit with maximum limit of Rs 50 lakh, for MSME customers. The loan tenure will be of 60 months.
Self-Help Groups (SHGs) are being offered loan of Rs 1 lakh per SHG for a period of 36 months with six months moratorium.
“SHGs have always been an important part of our business and with our initiatives we will ensure that the groups get all the desired support for financial independence. We have made these loans repayable over a longer period of time to give them the flexibility in operations until the business is back on track again,” said Padmaja Chunduru, Managing Director and CEO, Indian Bank.