Emergency Credit Line (CECL), will provide funds up to Rs 200 crore (Photo Credit: Representational photo)
Mumbai:
Amid businesses getting affected due to the novel coronavirus pandemic, the country's largest lender State Bank of India has opened an emergency credit line to meet any liquidity mismatch for its borrowers.
The additional liquidity facility Covid-19 Emergency Credit Line (CECL), will provide funds up to Rs 200 crore and will be available till June 30, 2020, SBI said in a circular issued on Friday. The loan will be offered at an interest rate of 7.25 per cent with a tenure of 12 months.
With a view to provide some degree of relief to the borrowers whose operations are impacted by Covid-19, it is decided to make available additional liquidity credit facilities to the eligible borrowers by way of ad-hoc facilities -- CECL to tide over the current crisis situation, the bank said in a circular to all branches.
The bank said the credit line is open for all standard accounts which have not been classified as SMA 1 or 2 as on March 16, 2020 are eligible to avail this credit line.
Special Mention Accounts (SMA) was introduced to identify those accounts that have the potential to become an NPA/stressed asset.
SMA-1 accounts are those where the overdue period is between 31 to 60 days. While, in SMA -2 accounts overdue is between 61 to 90 days. Borrowers can maximum avail 10 per cent of the existing fund based working capital limits, subject to a cap of Rs 200 crore, the bank said.
According to a recent survey conducted by industry body, FICCI, over 50 per cent of companies in the country see impact of coronavirus on their operations. Nearly 80 per cent businesses have witnessed decline in cash flows due to the global pandemic, it showed.
India On War Footing To Fight Coronavirus Pandemic
Prime Minister Narendra Modi urged the people to avoid leaving home and the city in view of novel coronavirus outbreak. He also appealed people to follow the instructions given by doctors and authorities. "Never forget - precautions not panic! It’s not only important to be home but also remain in the town/ city where you are. Unnecessary travels will not help you or others. In these times, every small effort on our part will leave a big impact.
Meanwhile, total positive cases of coronavirus rose to 315 in India. The disease also claimed 4 lives in the country.
