Indian Bank announces additional funding facility

Mumbai: Amidst the coronavirus outbreak, state-run Indian Bank on Wednesday announced an additional funding facility for large corporates, MSME, retail customers, pensioners and self-help groups (SHGs).

Last week, the country's largest lender State Bank of India also announced an emergency credit line to meet any liquidity mismatch for its borrowers.

IND- COVID Emergency Credit Line (IBCECL)Â- will provide additional funding of up to 10 per cent of the working capital limits (both fund based and non-fund based limits) with a maximum limit of Rs 100 crore, the lender said in a statement.

The loan tenor will be for 36 months with an initial moratorium of up to six months and would carry fixed interest rate of 1-year MCLR.

It will be offering loans to large corporates and medium enterprises that are in the standard category.

The bank is also offering loans to salaried employees up to an amount equal to 20 times of their latest monthly gross salary, with a cap of Rs 2 lakh to meet urgent medical and other expenditure.

It is offering loans to pensioners for an amount equal to 15 times their monthly pension, with a maximum limit of Rs 2 lakh. The repayment time for this loan will be 60 months.

SHGs are being offered loan of Rs 1 lakh per SHG for a period of 36 months with six months moratorium.

"We have made these loans repayable over a longer period of time to give them the flexibility in operations until business is back on track again, the bank's managing director and CEO Padmaja Chunduru said.