The State Bank of India (SBI) has taken the lead in providing relief to its customers to tide over the crisis caused by the spread of COVID-19, by opening emergency credit lines with a maximum limit of ₹200 crore.
The scheme will be in force till June 30. The loan tenure will be 12 months with an interest rate of 7.25%. All standard accounts that have not been classified as SMA (Special Mention Account) 1 or 2 as on March 16 and till the date of sanction are eligible, a circular issued by the SBI said.
“With a view to provide some degree of relief to borrowers whose operations are impacted by COVID-19, it is decided by the bank to make available additional credit facilities to eligible, existing borrowers by way of ad-hoc facilities to tide over the current crisis situation,” the circular said.
Customers can avail up to 10% of the existing fund-based working capital limit and the maximum amount they can get is ₹200 crore. The loan can be availed of in one go.
“However, the total additional exposure, including the present facility, should not exceed 25% of the fund--based working capital exposure,” said the circular reviewed by The Hindu .
There will not be any processing fee or prepayment penalty for such a loan.
The loan is repayable in six equated monthly instalments after a moratorium of six months from the date of disbursement of the loan.
The purpose of the loan is to meet the temporary liquidity mismatch arising out of COVID-19.
