COVID FightBack: SBI sets up emergency credit line

27 Mar '20

1 min read

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With a view to provide some degree of relief to the borrowers whose operations are impacted by Covid 19, State Bank of India is making available additional credit facilities to the eligible existing borrowers by way of ad-hoc facilities i.e COVID 19 EMERGENCY CREDIT LINE (CECL) to tide over the current crisis situation. CECL will be in force upto June 30.

CECL would be a demand loan with a tenor of 12 months, to meet the temporary liquidity mismatch arising out of Covid-19. The loan would be repayable in six equated monthly instalments after a moratorium period of six months from the date of disbursement of the loan. Interest would be served as and when applied, the bank said in an eCircular.

The loan amount would be limited to 10 per cent of the existing Fund Based Working Capital Limits (FBWC), with an upper cap of ₹200 crore. Existing customers who have availed special loan products like “SME Assist”, “SLC for MSME” and “SLC for GST Input Credit”, etc are also eligible for the facility.

However, total additional exposure including the present facility should not exceed 25 per cent of the FBWC exposure, the eCircular said.

Fibre2Fashion News Desk (RKS)

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