The Chennai-based public sector lender, Indian Bank, on Wednesday announced plans to help customers affected by Covid 19 through five special emergency loans to large companies, midsize companies, MSMEs, employees and to retirees.
To provide relief to customers affected by Covid 19, the bank will provide additional funding up to 10% of working capital limits (limits based on funds and not based on funds) with a maximum limit of Rs 100 crore. Large enterprises and medium enterprises belonging to the standard category would be eligible for this loan. The loan term will be 36 months with an initial moratorium of up to 6 months and will carry a fixed interest rate of 1 year MCLR. All other charges are lifted, a statement said.
Padmaja Chunduru, MD & CEO, Indian Bank, said, âIn these difficult times, Indian Bank is committed to supporting its customers. We expect these lines of credit to meet the immediate liquidity needs of businesses. “
In addition, under another program, additional funding of 10% of the FBWC limits with a maximum of Rs 50 lakh, available for all micro and small businesses and up to 60 months of occupancy. This is intended to address the liquidity issues faced by micro and small businesses.
Indian Bank serves 1.68 lakh SHG with over 22 lakh female beneficiaries. To help them overcome the crisis, he launched a new loan program under which each member can benefit from a subsidized loan of Rs 5,000, or Rs 1 lakh per SHG. The loan is for 36 months with a 6 month moratorium.
SHGs have always been an important part of our business and with our initiatives we ensure that the group receives all the support desired for financial independence. We have made these loans repayable over a longer period to give them flexibility in their operations until business is back on track, âshe said.
For employees, the Bank offers employees an amount of up to 20 times the last gross monthly salary, subject to a maximum of Rs 2 lakh. It is about dealing with urgent medical and other expenses. Concessional interest and all charges waived.
For retirees, the bank will offer 15 times the monthly pension, subject to a maximum of Rs 2 lakh, with a repayment of 60 months. “With the class of employees and retirees, it is more of a line to meet their immediate needs,” she added.