Banks offer emergency pay, business loans
The Indian Bank, headquartered in Chennai, on Wednesday announced five special Covid emergency loan programs for its salaried-class clients, retirees, self-help groups, MSMEs and large corporations. Bank customers are eligible for a payroll loan of up to 20 times their last gross monthly salary, with an upper limit of Rs 2 lakh. For the elderly, an emergency pension loan equal to 15 times their monthly pension, with an upper limit of Rs 2 lakh, can be borrowed. This comes with a 5-year loan term and zero interest or concession fees.
Indian Bank Managing Director and CEO Padmaja Chunduru said, “We have made these loans repayable over a longer period to give them flexibility in their operations until business picks up. With the salaried class and retirees, it is more of a line to meet their immediate (medical) needs and other expenses.
Union Bank of India Managing Director and CEO Rajkiran Rai said his bank also allows borrowers whose cash flows are affected by the Covid-19 lockdown to benefit up to 10% of their limit. existing working capital at reduced interest rates.
Bank of Baroda has introduced a Baroda Covid emergency line of credit, which provides additional funding of up to 10% of authorized limits. The interest rate for corporate borrowers would be a marginal 1-year financing cost of 8.15% without the standard premium. For MSMEs, the interest rate would be the Baroda Repo Linked Lending Rate of 8%.
Bank of India has launched a Covid emergency support program for businesses. By virtue of this, businesses can benefit from additional credit of up to 20% over their current working capital limit. Individuals can obtain a personal loan, which represents up to three times their last salary received. Those who have home loans can draw an additional amount as emergency loans.