Kolkata, July 19: The Central Government, State Bank of India (SBI) and other Public Sector Undertakings (PSB)s have come up with various initiatives to meet their operational liabilities, cash crunch and to start or maintain their businesses in the COVID-19 pandemic situation.
SBI has established a nodal officer in each administrative office to ensure speedy implementation of such initiatives said SBI General Manager MD Saad Imteyaz Hussaini while interacting in a webinar organised by Press Information Bureau, Kolkata, on the ‘Banking Efforts to help in attaining Atma Nirbhar Bharat in the Covid Situation’. He added, in the first week of April itself, SBI and other PSBs have come up with a new product, the Common COVID Emergency Line of Credit where 10% of their fund based working capital limit was provided to the MSME units and other business enterprises to tide over the liquidity crisis.
This product was availed by many MSME and business enterprises. This 10% working capital demand loan is having tenure of 24 months along with a moratorium period of six months. The Interest Rate is also 1% above MCLR, roughly around 8%. According to Hussaini, in the month of May, the Government of India has come up with a big bonanza for the MSME sector. The Government has launched an emergency credit limit of 3 lac crore to the MSME sector. Any MSME unit having total outstanding within 25 crore as on February 29, 2020 and not having any irregularity of NPA / SMA 2 can avail 20% of their outstanding as on February 29, 2020 as a working capital term loan. The term loan is pre-approved. The loan has a tenure of 48 months and moratorium of 12 months. Interest must be paid monthly as and when applied. The scheme is open either up to October 31, 2020 or whenever the 3 lac crore fund gets sanctioned by the member-lending institutions.
He also mentioned SBI and other PSBs offering E-Mudra loan as in the new normal banking transactions have been shifted more to the digital platform. Saad spoke on the YONO digital platform where Customers can open accounts online through YONO without visiting the Branch. SBI has launched a new concept called Pre-Approved Business Loan. Business enterprises can avail loan through digital platform without visiting branch, he informed. (UNI)
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