With a view to provide some degree of relief to the borrowers More Than 15 public sector banks have announced COVID-19 Emergency Credit Line (CECL) to All existing Corporate Borrowers and Medium Enterprises (MSMEs) facing disruptions in cash flow due to the impact of COVID 19.
Objective of the Scheme ?
the objective of the COVID-19 Emergency Credit Line(CECL) scheme is to meet the cash flow requirement being faced by our existing borrowers whose operations are affected due to COVID 19.
Covid-19 Emergency Credit Line (CECL) Loan for providing Emergency Credit Line to support liquidity to the Existing MSMEs Borrowers / Corporate & Non Corporate Borrowers / Agri borrowers enjoying limits under Food & Agro Processing Scheme, who are impacted by COVID 19.
Who is Eligible under CECL Scheme ?
Eligibility criteria is depending on Bank to Bank but as General criteria All existing standard accounts which have not been classified as (SMA 1) or (SMA 2) as on date of sanction are eligible.
Means Account to be standard and SMA-0, SMA-1 & SMA-2 are also eligible under the scheme.
What is the Amount of Loan ?
Maximum 10% of the existing Fund Based Working Capital Limits subject to a maximum of Rs.200 crores. and many other Banks are given more than that limit. It’s Depending on Bank to Bank.
What Interest Rate is Charged ?
ROI for Corporate/Non Corporate Borrower is 7.40% i.e 1 year MCLR and Processing & Other Charges are Nil.
Security and Repayment ?
Extension of charge on existing primary and/ or collateral security and Repayable in 18 equal monthly installments after a moratorium of 6 months from date of disbursement.
List of Major Banks who are starting CECL loan Scheme :-
- Bank of Baroda (BOB):- Baroda Covid Emergency Credit Line-BCECL
- Indian Bank:- IND COVID EMERGENCY CREDIT LINE
- PNB Bank:- PNB STANDBY LINE OF CREDIT
- Bank of India:- CovidEmergencyCreditLine
- UCO Bank:- UCO SAHYOG COVID 19 / UCO Emergency Credit Line
- Union Bank of India:-Covid Emergency Line Of Credit (CELC)
- State Bank of India (SBI):-Covid Emergency Line Of Credit