On April 29, 2020 Karnataka Vikas Grameena Bank(KVGB), a regional rural bank’s chairman P Gopi Krishna has launched ‘Vikas Abhaya’ a loan scheme to provide some relief to Micro, Small and Medium Enterprise(MSME) borrowers whose business activities are disrupted on account of the COVID-19 pandemic in Dharwad.Key Points
i.The loan will be for the existing MSME customers who have been regular as on February 29, a maximum loan of up to Rs 1 lakh will be provided and no collateral security is emphasized & is repayable within 36 months.
ii.It is an additional credit facility to the eligible existing MSME borrowers & helps them to assist over the current crisis and ensures the continuation of viable business activity.
Gist about few other bank’s Initiative to tackle COVID-19
i.Indian Bank(IND) has announced 5 special Covid emergency loan schemes, namely- IND- COVID Emergency Credit Line (IBCECL), IND- Micro, Small Enterprises(MSE) COVID Emergency Loan— (INDMSE-CEL), IND-COVID Emergency Salary Loan, IND COVID- Emergency Pension Loan to support its affected customers.
For Further reference
- It has also launched Self Help Group(SHG)-COVID – SAHAYA LOAN, where members can avail a soft loan of Rs. 5000 that is Rs. 1 lakh per SHG. The loan is for 36 months with a 6 months moratorium.
ii.Bank of India has launched a Covid Emergency Support Scheme for businesses where corporates can avail up to 20% additional credit on their existing current working capital limit. Individuals can get a personal loan, which is up to 3 times their last drawn salary. Those with home loans can draw additional amounts as emergency loans.
Headquarters– Dharwad, Karnataka,Sponsor Bank – Canara Bank