Emergency Loan Schemes Announced by Indian Bank During Lockdown
Last Updated : March 28, 2020, 12:12 a.m.
The Coronavirus pandemic is Creating a financial crisis in the whole world and India is also affected by this pandemic disease. The business class is facing a scarcity of funds due to lockdowns as they are unable to operate the business activities. Therefore, the Indian Bank has introduced some emergency loan schemes that would help you to resume business activities during such a financial crisis. You can take the emergency loan from the Indian bank to fulfill the scarcity of funds that are going into your business. There are five different loan schemes and among which the salaried employee can even take the emergency loan because everybody is not working from home and getting less salary by their organizations.
5 Emergency Loan Schemes by the Indian Bank
- IND- COVID Emergency Credit Line (IBCECL)
- IND-MSE COVID Emergency Loan (INDMSE-CEL)
- SHG- COVID – SAHAYA LOAN
- IND- COVID Emergency Salary Loan
- IND- COVID Emergency Pension Loan
IND- Covid Emergency Credit Line (IBCECL)
In this emergency loan you can get finance of up to 10% of your working capital. This loan is suitable for large corporate and medium enterprises. The Rate of interest for this loan is fixed and it is not negotiable. You can use this business loan to boost up your financial condition.
| Particulars | Details |
|---|---|
| Limits | - Fund Based - Non-Fund Based |
| Maximum Limits | INR 100 Crore |
| Tenure Period | 36 Months |
| Interest Rate | A fixed interest rate of 12 months MCLR |
IND-MSE COVID Emergency Loan (INDMSE-CEL)
Under this scheme of an emergency loan, you can take a loan of up to 10% of your Fund Based Working Capital. Once the lockdown period ends or even during the lockdown period you can utilize the funds for managing the business recurring activities and fight the financial crisis. You get a tenure of 5 years to clear the loan and it will enough time for you to bring your business back on the track.
| Particular | Details |
|---|---|
| Maximum Limits | INR 50 Lacs |
| Tenure Period | 60 Months |
SHG- COVID – SAHAYA LOAN
This loan is given under the Public Sector Based Scheme and restricted to Chennai only. It provides services to ₹1.68 lacs SHGs with more than ₹22 lacs women beneficiaries. So the Indian bank has started this scheme to overcome the financial problem by providing the loan between the range of ₹5000 to ₹1 lac.
| Particulars | Details |
|---|---|
| Loan Amount | INR 5000 to INR 1 Lacs |
| Tenure Period | 6 Months to 36 Months |
IND- COVID Emergency Salary Loan
This emergency loan scheme is only for salaried employees. We can see that even salaried employees are facing a financial crisis. Their salaries are cut off and they are getting low incentives. Therefore, in this loan scheme, you can get an amount up to 20 times your gross monthly salary with a maximum of ₹2 Lacs. If you are facing a financial crisis due to a low salary then this loan can be helpful to resolve your financial issues.
IND- COVID Emergency Pension Loan
Under the Covid Emergency Pension Loan, the pensioners can take a loan up to 15 times their monthly pension with a maximum of ₹2 Lacs. The Indian Bank charges a low rate of interest on this loan and no all the extra fees will be waived off by the bank.
Advantages of Emergency Loans During Lockdown
Almost every business is affected by the Coronavirus Outbreak and the lockdown that happened later. So the Emergency Loans are a great help for such businesses. Let’s take a look at the benefits of the Emergency Loan given by the Indian Bank.
Manage Working Capital :- The emergency loan during lockdown can help you to manage your working capital. There are some recurring expenses like rent, electricity bill, etc. that you have to pay every month. So, if your revenue is zero during a lockdown, then it would be really difficult for you to manage the recurring expenses. Therefore the emergency loans can be very helpful during such financial crises.
Help to the Salaried Employee :- There some organizations that have sent some of their employees on leaves with just a basic salary. So, it would be really difficult for them to manage their living expenses. If you are into the same situation, then you can take the emergency salary loan for meeting out your financial crisis. This loan is even helpful for those whose some portion of salaries have been deducted by their organizations.
Pensioners are also Benefited :- The pensioners can also take an emergency loan if in case they are running a business during their idle time. If the pension isn’t enough to run a business, then this loan can be helpful for you.
Improve your Business :- The emergency loan will definitely prove helpful to deal with the losses occurring due to Coronavirus Outbreak. You can either use it to manage the working capital or buying some of the capital assets.
Conclusion
Now you have various options for arranging the funds for your business during a lockdown. These Emergency Loan Schemes will definitely help you to bring your business back on track after all the Covid-19 crisis finishes. The rate of interest on loans is also competitive and tenure given by the bank is also enough to clear all debt.