On March 25, 2020 Indian Bank launched five special emergency loans for large corporates, medium enterprises, MSMEs, salaried and pensioners as a support to its customers affected through economic slump and lockdown because of the COVID-19 pandemic. Earlier, State Bank of India (SBI), Union Bank of India (UBI), Bank of India (BOI) initiated schemes to provide liquidity relief to borrowers.Let’s get through the relief measures taken by bank in form of special emergency loans:
IND- COVID Emergency Credit Line (IBCECL): This loan is focused on Large Corporates and Medium Enterprises in the Standard Category. Under this an additional funding of upto10% of the Working Capital Limits (both Fund Based and Non Fund Based limits) with a maximum limit of Rs 100 crore will be provided.
- Loan tenor- 36 months with an initial moratorium of up to 6 months
- Interest rate- Fixed interest rate of 1 year MCLR with no other charges
IND- MSE COVID Emergency Loan (INDMSE-CEL): Curated for Micro and Small Enterprises (MSEs), it will give additional funding of 10% of fund based working capital (FBWC) limit limits with maximum Rs 50 lakh. Its objective is to meet the liquidity issues faced by MSEs.
SHG-COVID – SAHAYA LOAN: This loan is for Self Help Groups (SHGs) under which each member can avail a soft loan of Rs. 5000 i.e., Rs. 1 lakh per SHG.
- Loan tenor- 36 months with 6 months moratorium.
IND-COVID Emergency Salary Loan: It is for salaried employees’upto an amount equal to 20 times latest monthly gross salary subject to maximum of Rs 2 lakh. This is to meet urgent medical and other expenditure with no concessional interest and other charges.
IND COVID- Emergency Pension Loan: This loan is specified for pensionersupto15 times monthly pension subject to maximum of Rs 2 lakh, with 60 months repayment with no concessional interest and other charges.
About Indian Bank:
- Headquarter– Chennai, Tamil Nadu
- Managing Director & Chief Executive Officer– PadmajaChunduru
- Tagline– Your Own Bank