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COVID-19: Indian Overseas Bank introduces special borrowing programme for self-help groups

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On April 27, 2020, Indian Overseas Bank (IOB), a major public sector bank (PSB), has launched a special borrowing programme for Self Help Groups (SHGs) to help them in difficult situations arising out of Coronavirus (COVID-19).IOB special scheme for SHGsKey Points:

i.Benefits: Under this scheme, a member of SHG will be given a maximum loan of Rs 5,000 & the limit for the group has been fixed at Rs 1 lakh.  This loan will be sanctioned with an interest rate of 9.4 % for 1 year.
It has been disbursed in 6 working days & the benefit can be availed till June 30, 2020.

ii.Eligibilty: SHGs with better records and at least twice the loan from IOB will be able to avail this facility. According to the bank’s rule, only those SHGs whose loan will be standard by March 1, 2020 will be eligible to take loans under this scheme.

iii.Repayment: The loan will have to be repaid in 30 Equated Monthly Instalments (EMIs). However, no installment will have to be paid for the first six months. The bank will not charge processing fees or pre-payment charges for the loan under the scheme.

iv.How to apply?
The interested SHGs will be able to apply for this directly by going to a bank branch or through business correspondents (BCs).

About Indian Overseas Bank (IOB):
Headquarters
– Chennai, Tamil Nadu
MD & CEO– Karnam Sekar
Tagline– Good People to Grow With