Public sector lender Indian Overseas Bank (IOB) today said it has introduced special credit facilities for the agriculture sector as a relief measure to fight the coronavirus pandemic.

In a press statement, the state-run lender said the facilities, under Working Capital demand Loan – Agri (WCDL-Agri), are available to all existing borrowers enjoying cash credit/OD for sectors like poultry, dairy, fisheries and other allied activities and for other infrastructure like cold storage and rural go-downs.

The bank also added that only accounts that are ‘standard’ and ‘performing’ as of March 2020 are eligible to avail this loan facility.

To avail the facility, applicants can submit their request to the branch directly or through email. The sanctioned loan amount can be availed by the borrower at one go. The loan will be sanctioned and disbursed by the bank within six working days from the date of receiving the required documents.

No processing fee

The working capital loan is repayable in six monthly instalments after an initial moratorium of six months. Interest will be serviced as and when debited.

“The Covid-19 pandemic has severe economic implications for the agriculture sector, among others. We are working to the best of our ability to help our customers,” Karnam Sekar, MD & CEO of the bank, was quoted in the statement.

“These loans will encourage more people to run their business for the greater good ofsociety,” he added.

The bank further said no processing fees or prepayment penalty will be charged. The quantum of loan disbursed under the scheme will be 10 per cent of the existing fund based working capital limit with a maximum of ₹10 crore for poultry sector and ₹2 crore for other allied activities.

The scheme, launched on April 4, will be valid up to June 30.

Related Topics
comment COMMENT NOW