SBI's credit line is up to ₹200 crore, while that of Union Bank's is up to ₹50 crore.
The State Bank Of India (SBI) has already come out with an ad-hoc loan facility 'Covid-19 Emergency Credit Line (CECL)', which is aimed at meeting the temporary liquidity mismatch caused by Covid-19 effects.
These emergency loans are available to both companies as well as retail customers depending on the bank.
Public sector banks including the State Bank of India, Union Bank, Andhra Bank and Indian Bank announced emergency credit lines for customers who need extra cash to tide through the Coronavirus lockdown. Loans would be offered at an interest rate of 7.25 percent and will have a tenure of 12 months.
"The Bank has decided to make maximum 10 percent of the existing fund based working capital limits (FBWC) subject to maximum of Rs 200 crore".
MSME borrowers would be given loan at an interest rate of the bank's repo linked lending rate of 8 percent. Large Corporates and Medium Enterprises that are in the Standard Category would be eligible for this loan.
"The entire loan under the scheme has to be repaid within the maximum period of 12 months including moratorium from the date of first disbursal or validity of sanction, whichever is earlier", the circular said, adding that in case the limit is availed of in tranches then the repayment should be 12 months from the date of first disbursal. All other charges are waived. This is meant to meet the liquidity issues faced by Micro and Small Enterprises during the challenging time now.
IND- MSE Covid Emergency Loan- (INDMSE-CEL)- Additional funding of 10 percent of FBWC limits with max Rs.50 lakhs, available for all Micro and Small Enterprises and up to 60 months tenor. This is to meet urgent medical and other expenditures. Indian Bank is servicing 1.68 lakh SHGswith more than 22 lakh women beneficiaries. The loan is for 36 months with 6 months moratorium.
All these relief measures have been announced by banks in consultation with the government and Reserve Bank of India, and more banks are expected to follow suit with similar schemes.