SBI, Indian Bank, Union Bank Rescue Businesses Amid Covid19; Extend Quick Credit

Even before the government's relief package to combat economic fall-out due to coronavirus pandemic, several major PSU banks including the likes of SBI, Indian Bank, UCO Bank, Bank of India, Union Bank have announced emergency credit line. So, businesses facing demand slump amid country-wide lockdown to contain the spread of the virus may get access to easy and quick loans from these banks.

SBI, Indian Bank, Union Bank Rescue Businesses Amid Covid19; Extend Quick Credit

SBI was the first PSU lender to offer this emergency credit line and through Covid-19 Emergency Credit Line (CECL) would extend loan up to Rs. 200 crore that will be on offer till June end. For a tenure of 12 months, the bank is extending credit at the rate of 7.25%.

"In wake of #coronavirus outbreak, #UnionBankofIndia unstintingly supports all its existing customers with the launch of Covid Emergency Line of Credit which provides additional credit facilities to tide over liquidity issues," Union Bank of India said in a tweet.

Also, Bank of Baroda has stepped in to provide quick loans to its current corporate and MSME borrowers.

While, Indian Bank has extended the emergency credit line facility for small businesses, retail customers, pensioner and companies. "In these challenging times, the bank is committed to stand by its customers. Keeping in view the hardships faced by various sectors of the economy, we have launched products to take care of immediate liquidity requirement of businesses and retail customers," Indian Bank managing director Padmaja Chunduru told PTI. Additionally, the bank has resorted to measures for ensuring the safety of its employees as well as continued banking services for its customers.

Also, various relaxations have been announced in relation to regulatory compliance such as extension in the deadline to file GST and ITR returns, an extension in Sabka Vishwas scheme deadline, increase in threshold limit for initiating IBC proceeding to Rs. 1 crore from Rs. 1 lakh.

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