State Bank of India or SBI which is India’s largest public sector lender is trying every step to help out its borrowers who are facing difficulty amid coronavirus. It has declared to make available additional credit facilities to the eligible existing borrowers by method of ad-hoc facilities. It can be termed as COVID-19 Emergency Credit Line (CECL) to tide over the current serious situation.
If the existing SBI borrowers are facing difficulties due to stalled economic activities due to Coronavirus fear, then they may opt for the CECL by way of SLC (Standby Letter of Credit) till June 30, 2020.
SBI Additional Loan of 10 percent:
Holders of all standard accounts, which have not been classified as Special Mention Account (SMA) 1 or 2, are eligible enough to get the additional loan up to 10% of the existing Fund Based Working Capital Limits (FBWC) with a maximum credit limit of Rs 200 crore.
Interestingly, the amount of loan would be disbursed in just one go. It may be repaid in 6 equated monthly instalments (EMIs) after a moratorium period of six months from the date of disbursement of the loan, with the option of exceeding the cover period of receivables by 3 months till closure of the facility.
A fixed rate of 7.25% per annum will be charged as interest and to be served as & when applied. It’s a golden opportunity for the existing SBI borrowers. They no more need to face economic problems due to the spread of covid-19. Simply grab the SBI low interest credit line to survive this time in a better way.
