Covid-19 Emergency Credit Lines for Businesses in India

In light of the global Coronavirus pandemic and its brutal impact on the economy along  with people’s lives all around the world, several relief measures have been announced by governments everywhere. The government of India too announced a Rs. 20 trillion economic stimulus package, labelled the Aatma Nirbhar Bharat Abhiyan or the Self-Reliant India Movement. However, economic packages and tax relief measures might not be sufficient for a massively populated country like India, steadily climbing up on the list of worst affected countries in the world. Even as India prepares to end the lockdown and unlock the country, millions are struggling to keep their businesses up and running.

To ease some burden, plenty of Public Sector Banks (PSBs) of the country have come forward with emergency credit lines for businesses.. The following is a comprehensive list. 

1. State Bank of India

Valid for existing borrowers, the Common Covid-19 Emergency Credit Line (CCECL) will be in force till 30 June. Under CCECL, borrowers will be eligible to apply for loans upto 10 percent of existing fund based working capital limits upto a maximum of Rs. 200 Cr.

2. Union Bank of India

The Covid Emergency Line of Credit (CELC) Scheme announced by UBI is valid for all existing borrowers with Fund Based Capital Limits irrespective of sector / constitution. Quantum finance of upto Rs. 50 Cr can be sanctioned at the fixed ROI of 8%.

3. UCO Bank

a) UCO Covid-19 Emergency Credit Line (UCECL)

Applicable for all existing Standard Accounts Borrowers, under this scheme a maximum extension of 10% of the existing Working Capital Limits Fund Based as well as Non-Fund Based can be granted subject to a cap of Rs. 50 Cr.

b) UCO Sahyog Covid-19

This scheme is announced in particular for farmers, Self Help Group. (SHG) Members and PM Jan-Dhan Yojana OD account holders. OD account holders get an additional OD Rs. 1000 over and above of the existing maximum OD of Rs. 10,000. Farmers can avail 10% of existing facility with a cap of Rs. 30,000 and SHGs can avail Rs. 5000 per member with a cap of Rs. 1 Lakh per SHG.

4. Indian Overseas Bank

IOB has announced the Covid-19 Line of Support for MSME Scheme offering upto 10% of the specific existing fund based working capital facility subject. to a max of Rs. 1 Cr. This scheme is valid for existing MSME units having credit limits with satisfactory credit record of two years.

5. Indian Bank

a) Covid Emergency Credit Line

Applicable for existing Corporate and Medium Enterprises, the CECL from Indian Bank offers upto 10% of existing fund based and non fund based working capital limits subject to a maximum of Rs. 100 Cr.

b) MSE COVID Emergency Loan

Existing micro and small enterprise borrowers of Indian Bank can avail this loan to meet any liquidity crunch caused by Covid-19. The scheme, valid till 30 September, offers upto 10% of working capital with a cap of Rs. 50 Lakhs.

c) Sahaya Loan for Self-Help Groups

Yet another offering from Indian Bank for Covid-19 related money struggle, the Sahaya Loan is designed for SHGs across the country. With a cap of Rs. 1 Lakh per SHG, the scheme has a loan tenure of 36 months and moratorium of 6 months.

6. Bank of India

BOI’s Emergency Credit Line Guarantee Scheme (EGLGS) will provide 100% guarantee coverage by National Credit Guarantee Trustee Company to Member Lending Institutions on Guaranteed Emergency Credit Line of up to Rs. 3 Lakh Cr to eligible MSMEs.

7. Bank of Maharashtra

a) Covid-19 Mahabank SHG Rahat Yojana

Term loans for SHGs have been made available via this particular scheme of BoM. An amount of Rs.7,500 can be sanctioned per SHG member, with a maximum of Rs. 3 Lakhs per SHG.

b) Covid-19 Mahabank Kisan Rahat Yojana

Agro industries and farmers stand to benefit from this scheme offered by. BoM. Under this scheme, BoM has committed to provide instant credit for the farming community to meet their requirements for farm maintenance and farm-related activities.

Agro industry units can avail 10% of existing fund based working capital limits upto Rs. 10 Cr, whereas for the farmers the limit is at 50% of existing KCC sanction limit – from a minimum of Rs.10,000 to a maximum of Rs. 1 Lakh.

b) Ad-Hoc Line of Credit Covid-19 by way of Stand by Line of Credit

This credit line can be availed in the form of working capital by corporate borrowers who have standard accounts. Upto 10% of existing fund based working capital limits with a maximum of Rs. 50 Cr can be sanctioned under this scheme.

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