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IOB launches Working Capital Demand Loan for agriculture sector: COVID-19

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On April 22, 2020 Indian Overseas Bank (IOB) has launched Working Capital demand Loan for agriculture sector (WCDL-Agri), a special credit facility for the agriculture sector & allied activities as a relief measure to fight the coronavirus (COVID-19) pandemic.working capital demand loan IOBKey Points

i.The loans will be available to all the existing borrowers whose accounts are ‘standard’ and ‘performing’ as of March 2020 from poultry, dairy, fisheries and other allied activities and infrastructure activities such as cold storage and rural go-downs.

ii.The bank will not charge processing fees or prepayment penalty & will offer loans of 10% of the existing fund-based working capital limit with a maximum of Rs 10 crore for the poultry sector and Rs 2 crore for other allied activities.

iii.The loan is repayable in 6  monthly instalments after an initial moratorium of 6  months. Interest will be serviced as and when debited.

iv.To avail the facility, applicants can submit their request to the branch directly or through email.

v.The loan is sanctioned and disbursed within 6 working days from the date of receiving the required documents. The scheme, launched on April 4, will be valid up to June 30.

vi.It has also launched the  “COVID 19 Line of Support Scheme” for all MSME customers.

Other bank’s initiatives in the wake of COVID-19 outbreak

  • Union Bank of India launched COVID Emergency Line of Credit (CELC) which provides additional credit facilities to tide over liquidity issues for its existing customers.
  • Bank of Baroda has set up an emergency credit line to provide funds to its existing MSME and corporate borrowers
  • State Bank of India has announced an additional funding facility for its borrowers.
  • Canara Bank announces special Loan schemes for the MSME, Corporate, Business, Agri & Retail Customers, to tide over the liquidity / Cash flow.

About IOB:
Headquarters– Chennai, TamilNadu
Managing Director (MD) & Chief Executive Officer (CEO)– Karnam Sekar