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Get an Emergency Credit Line on Business Loan during Coronavirus Lockdown

Highlights

  • Explore various banks that have Come Forward to give Emergency Credit Line on Business Loan during Lockdown.
  • Make the best use of the Emergency Loan to Bring your Business back on track.
  • Enjoy 10% to 20% of Working Capital or Existing Loans as of the Emergency credit Line.

Many countries are going through lockdowns for preventing the Coronavirus disease from spreading. Among all those countries India is one of them going through the financial crisis due to lockdown. Therefore, some Indian banks have taken the initiative to provide Emergency Credit Line on Business Loan so that the affected business should overcome their financial crisis. They are giving more credit facilities on an existing business loan. You can use the extra credit for managing your working capital or clearing the debt of the creditors. Let’s take a look at the banks that have provided the emergency credit line to their customer for boosting up their businesses.

Various Banks that are Giving Emergency Credit Line on Business Loan

Here is the list of various banks that have been giving extra business loans to their existing customers in order to bring their business activities in the original schedule.

SBI Covid Loan

In this loan scheme, you are entitled to take a loan of up to INR 2 Crores or a loan up to 10% of the already sanctioned loan. You can use this amount to cover the losses that have occurred during the lockdown period.

  • The Maximum Loan Amount available under this scheme is up to INR 2 Crores.
  • One can take a maximum of 10% of the already sanctioned loan.
  • The Rate of Interest Chargeable on the borrowed sum is 7.25%.
  • 30th of June 2020 is the last date for applying for the loan.
  • The maximum tenure for this loan is 12 months.
  • The Bank will divide EMIs into 12 monthly installments.
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Eligibility

The Special mention accounts are not eligible to take the SBI Covid loan. It simply means that the accounts whose turning potential is considered as the Non-performing Asset are put into Special Mentioned Accounts.

Indian Bank Emergency Loan

The Indian bank has given the credit line to the Large and Small enterprises. All these enterprises can take 10% of the working capital limit as an extra loan and continue their working in the original form. This bank offers 2 types of emergency loans for business.

Covid Emergency Credit Line

  • Get a Loan of 10% of the working capital limit for improving your business activities.
  • The maximum loan that can be taken under this scheme is of INR 100 Crore.
  • 36 Months is the maximum tenure period for this loan.
  • This loan has a fixed rate of Interest for 12 months MCLR.
  • This loan is beneficial for large enterprises.

MSE Covid Emergency Loan

  • This loan is helpful for micro and small scale enterprises.
  • The businessmen can take a loan up to 10% of their Finance Based Working Capital.
  • The Maximum Loan amount that can be taken is of INR 50 lacs.
  • A tenure of 60 months that is 5 years is provided for this loan.

Baroda Covid Emergency Credit Line

The bank of Baroda is also giving loans to needy businesses in order to encounter the financial crisis. You can take a loan of up to 10% of the sanctioned limit and utilize the fund for managing your business effectively.

  • Get 10% of the existing business loan from Bank of Baroda as the extra loan.
  • The Rate of Interest for the Emergency Credit line is 8.15%.
  • The Rate of interest for the MSMEs is 8%.
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Bank of India Covid Emergency Support

The Bank of India has provided the Covid Emergency support by giving 20% of the Working Capital as loans to the affected businesses. You can apply for the loan and take 20% of the Working Capital as a debt to fulfill all the necessities of the business.

On the other hand, salaried employees are also affected due to lockdown. Some of the employees have to face the salary cut off. So, the Bank of India is giving personal loans up to 3 times of the last drawn salary to the salaried employees.

Union Bank of India Emergency Loan

The Union Bank of India is helping businesses by giving business loans at a reduced rate of interest. You can take the Emergency Credit Line on Business Loan and boost up all the activities of your business. The Union bank allows enjoying a credit line of up to 10% of the working capital. You can resume your business activities once the lockdown periods get over through these funds.

Conclusion

Well, you can see that there are multiple banks that are givingyou a helping hand during the financial crisis. So, you must appreciate theinitiatives taken by these banks for boosting up your business through a creditfacility. You can manage your working capital or purchase a capital asset usingthese funds. The Emergency Credit Line on Business Loan will help you tosurvive the lockdown happening due to the Covid-19 disease. You should make thebest use of all the credit facilities given by multiple banks during such afinancial emergency.

Free CIBIL Score
Personal Loan Interest Rates May 2020
Fullerton India14.00% - 33.00%
HDFC Bank10.75% - 21.45%
ICICI Bank10.99% - 18.49%
IndusInd Bank10.99% - 16.00%
Kotak Bank10.99% - 20.99%
RBL17.50% - 24.00%
Standard Chartered Bank11.50% - 18.00%
Tata Capital10.99% - 18.00%

Home Loan Interest Rates May 2020
Axis Bank8.10% - 8.85%
Bank of Baroda7.25% - 8.25%
Citibank8.20%
HDFC7.75% - 8.65%
ICICI Bank7.70% - 8.80%
Indiabulls Housing Finance Limited8.80% - 11.05%
Kotak Bank8.20% - 9.25%
LIC Housing7.40% - 8.85%
Piramal Capital & Housing Finance9.00% - 9.10%
PNB Housing Finance8.95% - 9.20%
Reliance Home Finance8.75% - 14.00%
State Bank of India/SBI7.35% - 8.00%
Tata Capital9.20% - 9.35%