Public sector lender Indian Overseas Bank (IOB) has launched an exclusive credit facility for agriculture and allied activities. Titled WCDL-Agri (working capital demand loan – agriculture), these loans will be available to all existing borrowers enjoying cash credit/OD facilities, from sectors such as agriculture, poultry, dairy, fisheries and allied activities, said the bank. This scheme is valid up to June 30 and is available to all existing borrowers enjoying cash credit/OD for sectors such as poultry, dairy, fisheries and other allied activities, said the bank in a statement.As per the bank’s policy, only accounts that are standard and performing as at March 2020 are eligible for these loans.Borrowers will not be charged any processing fee or pre-payment penalty. About 10% of the existing fund-based working capital limit, subject to a maximum of ₹10 crore for poultry sector and ₹2 crore for allied activities, will be the quantum of loan disbursed under the scheme.
Applicants can submit their requests to the branches directly or through e-mail. These loans will be sanctioned and disbursed by the bank within six working days of the receipt of required documents by the bank. It is repayable in six monthly instalments after an initial moratorium of six months. Interest will be serviced as and when debited.
“These loans will encourage more people to run their business for greater good of the society,” said Karnam Sekar, managing director and chief executive officer, IOB.
