Even as Finance Minister Nirmala Sitharaman has announced to roll out an economic relief package amid the Covid-19 scare, the PSU banks have come to rescue the businesses affected by the countrywide lockdown. The businesses suffering from a slump in demand and zero footfall in the market can now look up to many PSU banks to get emergency credit to carry on their endeavors. State Bank of India, Indian Bank, Uco Bank, Bank of India (BOI), and Union Bank of India (UBI), have announced emergency credit lines for quick loans. While Bank of Baroda has offered quick loans to its existing MSME and corporate borrowers, the Indian Bank has offered companies, small businesses, retail customers and pensioners, to avail this facility.
In wake of #coronavirus outbreak, #UnionBankofIndia unstintingly supports all its existing customers with the launch of Covid Emergency Line of Credit (CELC) which provides additional credit facilities to tide over liquidity issues. @DFS_India
- Union Bank of India (@UnionBankTweets) March 24, 2020
SBI was the first one to announce such emergency credit line and it said in a circular that the additional liquidity facility Covid-19 Emergency Credit Line (CECL), will provide funds up to Rs 200 crore and will be available till June-end. The State Bank of India has offered loans at an interest rate of 7.25 percent, for a tenure of 12 months. Many other PSU banks are also expected to follow the suit.
To financially help you cope during these difficult times of #coronavirus outbreak, Indian Bank unveils Credit Lines for Corporates, Small Businesses, Retail Customers and Pensioners. DM us your request. @DFS_India pic.twitter.com/Tu0uBRM28Q
- Indian Bank (@MyIndianBank) March 24, 2020
Meanwhile, to reduce the burden on the companies, FM Sitharaman recently eased the burden of regulatory compliance by announcing a slew of measures, which included an extension of the deadline to file GST and Income Tax returns, an extension of the deadline for Sabka Vishwas Scheme, and raising the threshold limit of initiation of IBC proceedings from Rs 1 lakh to Rs 1 crore. The Finance Ministry is likely to soon announce an overall economic relief package in the wake of coronavirus lockdown.