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Banks Launches New Scheme of Credit Line Emergency Amid COVID-19

As coronavirus is widely spreading and threatening people to stay home. Due to this there are no jobs being carried out on the regular basis as earlier and every business has fallen down at sudden. Every day there are an increasing number of people getting victims of coronavirus. It has been almost a month, there is still not way out to reduce the number from dangerous diseases like coronavirus


Still, citizens are supporting it to get better by conducting clap shows from their balconies, staying home or helping other citizens in terms of food, essential commodities, and more.


To help people and existing businesses, major banks such as Bank of India, State Bank of India, Bank of Baroda are introducing emergency loan services. PFurthermore, other public sector lenders UCO Bank, Indian Overseas Bank, Union Bank and Canara Bank are also looking forward to starting the loan services for their existing customers.


With the spread of the coronavirus outbreak, Union Bank of India posted a tweet that all their existing customers with the launch of COVID Emergency Line of Credit are providing credit lines with an intention to help their retail customers and the one who require money.


Public sector banks have taken responsibility for the safety of the staff existing customers of the bank. Padmaja Chunduru, Managing Director of Indian Bank states that the bank is dedicatedly committed to support their dear customers.


Moreover, with the banks launching the emergency loan services, Bank of India also announced emergency services for their customers. Moreover, the banks have decided to run credit line for 36 months with an interest rate of 1 year MCLR.


Seeing the activity of other banks, Bank of Baroda made a statement of setting up the offer of emergency loan for their existing MSME and corporates. This would be similar funding which have been carried forward by the giant lender State Bank of India, in the previous week. Canara Bank tweeted that they have announced special loan schemes for their Corporate/Business/MSME/Agri & Retail Customers to tide over the liquidity/Cash flow mismatches in the wake of the outbreak of COVID-19.


Indian Overseas Bank has launched MSME Product “COVID-19 Line of Support Scheme” for all MSME customers.


The IND-COVID Emergency Credit Line (IBCECL) for large size organizations offers extra funding of 10 percent of the Working Capital Limits with a maximum limit of Rs 100 crore. Large size organization and medium size organization are settled in Standard Category. Thus they would be easily eligible for getting a loan.


Due to the spread of coronavirus across the globe, every individual business is experiencing negatives in work and profits. As this is believed to be one of the best moves banks are taking care of. Providing the credit line emergency to their existing customers would help people survive in such critical situations.