Money & Banking

Covid-19: Bank of Maharashtra launches financial support schemes

Our Bureau Pune | Updated on April 09, 2020 Published on April 09, 2020

Bank of Maharashtra logo   -  Website/Bank of Maharashtra

The bank is providing ‘Emergency Credit Line- Personal Loan Scheme- Covid 19’ in the form of term loan for all standard housing loan accounts

Bank of Maharashtra (BoM) has announced various schemes for the corporate, retail, and agriculture sector to ensure immediate financial assistance against the backdrop of Covid-19 crisis.

“For corporates, BoM is providing ‘Ad-hoc Line of Credit Covid-19’ by way of SLC (Stand by line of Credit) to overcome the liquidity impact of Covid-19. This facility can be availed in the form of working capital/STL. Borrowers having standard accounts can avail of this facility.

The quantum of finance is maximum up to 10 per cent of the existing fund based working capital limit, maximum up to ₹50 crore,” the bank said in a release. This creditwill be in addition to the existing finance. The repayment for this scheme would be within a maximum period of 12 months and the moratorium will be for a period of six months.

Existing borrowers

For existing housing loan borrowers, BoM is providing ‘Emergency Credit Line- Personal Loan Scheme- Covid 19’ in the form of term loan for all standard housing loan accounts, where security charge is completed and repayment started. Existing housing loan borrowers who have already availed personal loans are also eligible, subject to deduction norms. The quantum of finance is up to ₹3 lakh. Maximum repayment period is 36 months, including six months’ moratorium.

Under the ‘Mahabank SHG Rahat Yojana- Covid 19’ scheme, the BoM will provide additional support to existing SHGs in the form of term loan. The quantum of loan is decided as ₹7,500 per SHG member and total maximum limit (including existing loan) is up to ₹3lakh per SHG. This term loan is to be repaid within 36 months. The repayment for this scheme would be on a monthly/quarterly/half-yearly basis as per borrower SHG’s request and the moratorium will be for a period six months.

Farmer scheme

Under the Covid-19 Mahabank Kisan Rahat Yojana for agro-based industries/units, the objective is to meet the temporary liquidity mismatch of agro and food processing industries arising from Covid-19 disruption. A limit of 10 per cent of existing FBWC limits up to ₹10 crore may be sanctioned. Repayment is within 12 months, excluding a moratorium period of up to six months. The repayment for this scheme would be on a monthly/quarterly/ half-yearly basis as per borrower request.

Under the scheme , BoM will provide instant credit for the farming community to meet the emergent funds’ requirement for farm maintenance and other farm-related activities and related domestic purpose. The limit stands at 50 per cent of the existing KCC sanction limit /TL limit, minimum amount being ₹10,000 and maximum ₹1,00,000 for existing KCC account holders having regular repayment. The total tenor of the scheme is 30 months, which includes moratorium of six months. Repayment would be on a half-yearly/yearly basis as per borrower request.

AS Rajeev, Managing Director and CEO, BoM, in a press statement said: “We are with our existing borrowers, self-help groups and the farmers during these difficult times, so that their emergent fund needs are met with ease. We urge our borrowers to avail of these special schemes to meet their liquidity mismatch on account of the Covid-19 outbreak.”

Published on April 09, 2020

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.