On May 28, 2021, Canara Bank launched 3 categories of loan schemes such as Canara Chikitsa healthcare credit facility, Canara Jeevanrekha healthcare business loan, and Canara Suraksha personal loan scheme, as a part of the fight against COVID-19 to offer healthcare credit, business and personal loan to individuals.
About the 3 categories of loan:
a.Canara Chikitsa healthcare credit facility:
i.This scheme offers loans from over Rs 10 lakh to Rs 50 crore to registered hospitals, nursing homes, medical practitioners, diagnostic centres, pathology labs that are engaged in servicing healthcare infrastructure.
ii.The loan will be offered at a concessional rate of interest with a tenor of 10 years and a moratorium of up to 18 months.(Valid till March 31, 2022)
b.Canara Jeevanrekha healthcare business loan:
i.Under this, the bank will offer a loan up to Rs 2 crore at a concessional interest rate for manufacture and supply of healthcare products viz, medical oxygen and oxygen cylinders, and oxygen concentrators to registered hospitals and nursing homes or other manufacturers, and suppliers.
ii.This loan has no processing fee and for Micro, Small and Medium Enterprises (MSMEs), the loan will be provided with no collateral security as the lender will cover under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), and the bank will bear the guarantee premium for them.
iii.For non-MSMEs, the collateral security will be a minimum of 25 percent. The scheme is valid till March 31,2022
c.Canara Suraksha personal loan scheme:
i.This scheme will provide loans from Rs 25,000 – Rs 5 lakh as immediate financial assistance for COVID-19 treatment.
ii.The scheme will offer a moratorium of 6 months with no processing fee, and it will be valid till September 30, 2021.
Note – On May 5, 2021, the Reserve Bank of India (RBI) announced an on-tap liquidity window of Rs 50,000 crore with 3 years of maturity and at repo rate till March 31, 2022, for banks to lend under the priority sector lending classification.
Recent Related News:
On December 12, 2020 Canara Bank launched ‘FX 4 U’, a new technology(tech) product. This product helps the users of its Internet Banking(IB) to handle forex transactions.
About Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE):
i.The Government of India launched Credit Guarantee Scheme (CGS) to strengthen the credit delivery system and facilitate flow of credit to the MSME sector without any third party guarantee or collateral
ii.To operationalise the CGS, Government of India and Small Industries Development Bank of India(SIDBI) set up the CGTMSE.
Headquarters – Mumbai, Maharashtra
Chief Executive Officer – Shri Sandeep Varma
About Canara Bank:
Establishment – July 1906
Headquarters – Bengaluru, Karnataka
MD & CEO – L.V.Prabhakar
Tagline – Together We Can
Syndicate Bank was amalgamated into Canara Bank on April 2020
