Canara Bank’s Emergency Loans For Entrepreneurs: Pay EMI After 6 Months, No Security Needed

Canara Bank's Emergency Loans For Entrepreneurs: Pay EMI After 6 Months, No Security Needed

Canara Bank’s Emergency Loans For Entrepreneurs: Pay EMI After 6 Months, No Security Needed

The COVID-19 pandemic has affected many businesses across many industries all over the country. The Reserve Bank of India (RBI) has introduced the EMI moratorium to provide relief to the Micro, Small and Medium Enterprises (MSMEs).

The Canara Bank has announced a ‘Canara Credit Support’, an emergency credit facility for MSMEs to weather the COVID-19 crisis. 

Read to find out more…

What is ‘Canara Credit Support’?

The Canara Credit Support is extended as a quick and hassle-free loan to overcome the temporary liquidity mismatches for payment of statutory dues, salary/wages/electricity bill, rent etc.

The lender  has  sanctioned nearly 6 lakh loans amounting to Rs.4300 crores under agriculture, Self-Help Groups (SHGs) and Retail categories.  

The Bank has also sanctioned more than Rs 60,000 crores of advances to the Corporates and MSMEs from March, 2020 till date.  

The bank has also employed various strategies viz. SMS, Call Centres, emails, personal calls to reach out to the eligible borrowers to explain the facility in order to sanction the loan.

Furthermore, the Government of India has announced an emergency credit line of 20% of the outstanding credit as on 29th Feb, 2020 to MSME borrowers having Rs 25 cr outstanding with an annual turnover up to Rs.100 cr.  The credit line is 100% guaranteed by the Government of India.  The facility can be availed up to October 31, 2020 at the convenience of the borrower subjected to the terms and conditions. 

Shri L V Prabhakar, MD & CEO, Canara Bank said, “Canara Bank has proved its customer-centricity and customer responsiveness in the disbursement of the COVID-19 schemes. All our branches and  offices have been continuously working to reach out to all our customers in this hour of need.  We are sure that once the lockdown is completely lifted, our customers would be able to avail the sanctioned facilities to the full extent and improve their business.”

What are the Banks Doing to Help the Borrowers and Businesses in the Crisis?

  1. All Standard Accounts including SMA 0 and SMA 1 are eligible to avail this facility.  
  2.  10% of existing fund based working capital limits or Rs 150 Crores whichever is lower is extended under this facility. This limit is over and above the eligible maximum permissible Bank Finance to the unit.
  3. The facility is given for a period of 24 months with 6 months moratorium.
  4. The loans are priced very competitively with no processing charges, no margin and no additional security.

Additionally, the RBI has extended the EMI moratorium on loans by 3 months which will now end on August 31, 2020. In order to ease the difficulties of the borrowers in repaying the accrued interest, borrowers can convert the accumulated interest to a Funded Interest Term Loan payable by March 31, 2021.

"Canara Bank's Emergency Loans For Entrepreneurs: Pay EMI After 6 Months, No Security Needed", 5 out of 5 based on 1 ratings.

Comments are closed, but trackbacks and pingbacks are open.

who's online