In bid to accelerate the sluggish economy caused by the lockdown imposed by the Government to prevent the spread of Coronavirus, following the guidelines of the Government of India almost all nationalised banks are running various programmes to improve trade and business condition in the State.
The banks started various credit linked programmes to provide help to small vendors to big traders like medium and small industry owners to accelerate their trade and business activities, which have been badly impacted by the lockdown.
A senior official of the State Bank of India (SBI) requesting anonymity informed that they have instructed traders and businessmen to know their requirements to provide any possible help. The bankers have met the traders, provided help as per requirements and a large number of people benefitted from the programmes of the banks, he added.
"In wake of the Coronavirus outbreak, SBI supported all its existing borrowers by launching COVID19 Emergency Credit Facility (CECL) which helped them meet temporary liquidity mismatch in operating their business. The quantum of loan is in the form of an additional line of credit ranging from 10 per cent or higher of existing working capital limits. A maximum loan amount of upto Rs 200 crores or 10 percent of the existing fund based working capital limits can be availed under this emergency line. The facility was available till end of June and it has been specifically aimed at MSME borrowers. These loans have been given at a flat rate of 7.25 percent," said the official.
According to the information provided by an official from Reserve Bank of India that there is no target to provide help to limited numbers of existing customers. Any customer can get help as required.
An official from the Central Bank of India also informed that they are providing credits to their existing customers so that their business can sustain during this global pandemic crisis.
Other than plans for the MSME sector the banks also started an e-Mudhra credit programme for small vendors and for those who have small businesses but he is not a vendor. Under this programme the banks are providing credit upto Rs 50,000 on very low interest
rates.
Other than aforementioned programmes the existing programmes like Start Up, Mudra, PMEGP, Home Loans, Vehicle Loans and others are going as usual. The banks also deferred the repayment of loan limit to three months to six months and also deferred the interest repayment.