In a relief to existing borrowers, the State Bank of India
(SBI) on Friday announced a new scheme where the lender will provide emergency credit to borrowers whose operations are hit by the Coronavirus
The government lender will make additional credit available via Covid-19 Emegency Credit Line (CECL) to existing borrowers on an ad-hoc basis. CECL will be in force upto June 30.
The emergency credit lending is to meet the liquidity mismatch arising from the virus. Loans upto 10 per cent or a maximum of upto Rs 200 crores under exisiting fund based working capital limits (FBWC) will be provided under the CECL.
However, total additional exposure including the present facility should not exceed 25 per cent of the FBWC exposure. The loans will be granted as fund based limits only.
The loans can be repayable in 6 monthly instalments after a moratorium period i.e, 6 months from the date of disbursement. A fixed interest rate of 7.25 per cent of will be charged as and when applied.