Business

Indian Bank to give COVID-19 loans

Individuals, MSMEs and SHGs among those who will benefit

Public sector lender Indian Bank has announced special emergency loans for various categories of customers such as individuals, corporates, MSMEs and self-help groups (SHGs), retail borrowers and pensioners.

Ind-Covid emergency credit line will provide additional funding of up to 10% of the working capital limits (fund-based and non fund-based) with a maximum limit of ₹100 crore.

Large corporates and medium enterprises that are in the standard category would be eligible for this loan. The loan tenor will be 36 months with an initial moratorium of up to six months and would carry a fixed interest rate of one-year MCLR. All other charges are waived.

Ind-MSE Covid emergency loan will provide an additional funding of 10% of fund-based working capital limits subject to a maximum of ₹50 lakh to all MSMEs. It has a 60-month tenor.

To help SHGs tide over the crisis, Indian Bank has launched the SHG-Covid-Sahaya loan. Under this, each member can avail a soft loan of ₹5,000 and ₹1 lakh per SHG. The loan is for 36 months with six months moratorium.

Ind-Covid emergency salary loan will be given to salaried employees up to an amount equivalent to 20 times the latest monthly gross salary subject to a maximum of ₹2 lakh. This is to meet urgent medical and other expenditure. The loan will be given at a concessional rate of interest and all charges are waived.

Ind Covid emergency pension loan is provided up to 15 times of monthly pension subject to a maximum of ₹2 lakh, with a 60-month repayment tenor. Interest is charged at concessional rates interest and all charges are waived.

“In these challenging times, Indian Bank is committed to stand by its customers. We expect that these credit lines will meet the immediate liquidity requirements of businesses and other sections of the society,” said Padmaja Chunduru, managing director & CEO, Indian Bank.

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Printable version | Apr 8, 2020 12:17:24 PM | https://www.thehindu.com/business/indian-bank-to-give-covid-19-loans/article31166931.ece

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