Canara Bank releases emergency loan facilities for MSMEs during lockdown

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 or wages or electricity bill, rent. Photo: Reuters

The bank has sanctioned nearly 6 lakh loans amounting to Rs 4,300 crore under agriculture, SHGs and Retail categories. Photo: PTI

The Bank has also sanctioned more than Rs 60,000 crore of advances to the Corporates and MSMEs from March till date. Photo: PTI

The government has announced emergency credit line of 20 per cent of the outstanding credit as on February 29 to MSME borrowers having Rs 25 crore outstanding with an annual turnover up to Rs 100 crore. The credit line is 100 per cent guaranteed by the Central government. The facility can be availed up to October 31 at the convenience of the borrower and as per the terms and conditions. Photo: Pixabay

All standard accounts including SMA 0 and SMA 1 are eligible to avail this facility. About 10 per cent of existing fund based working capital limits or Rs 150 crore whichever is lower is extended under this facility. This limit is over and above the eligible maximum permissible bank finance to the unit. The facility is given for a period of 24 months with 6 months moratorium. The loans are priced very competitively with no processing charges, no margin and no additional security. Photo: PTI

Apart from the above facility, as per RBI regulatory package on COVID-19, moratorium has been extended on payment of all instalments for term loans falling due between March 1 to August 31. Photo: PTI