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

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