The biggest lender State Bank of India’s (SBI) chairman Dinesh Kumar Khara on Sunday stated that as per preliminary assessment, the bank really should be capable to make a book of Rs 2,000 crore via expanded emergency credit line assure scheme (ECLGS). Khara made this comment at a joint press conference of SBI and Indian Bank’s Association (IBA) to launch standardised Covid loan goods by public sector banks.
Earlier in the day, Finance Ministry had enlarged the scope of the Rs 3 lakh crore ECLGS to cover loans up to Rs 2 crore for setting up on-website oxygen generation plants at healthcare facilities and brought in the ailing civil aviation sector below its ambit.
Khara stated that public sector banks have come up with 3 sets of goods to make a ‘Covid book’ below Reserve Bank of India’s (RBI) liquidity scheme and the ECLGS. The relief measures consist of a healthcare enterprise loan for setting up oxygen plants, healthcare facilities and unsecured individual loans for Covid-19 remedy.
The price of interest for enterprise loans offered for setting up oxygen plant below ECLGS will be capped at 7.5%, and the repayment can be completed in 5 years. The banks have not specified prices for other healthcare facility loans. However, the price of interest will stand at 8.5% at SBI, Khara stated. Apart from it, borrowers can avail loans of Rs 25,000 to Rs 5 lakh for Covid-19 remedy with a tenure of 5 years.
IBA chairman Rajkiran Rai G stated the goods have been standardised with approvals from all public sector banks’ boards last week.
He also stated that consumers opting for restructuring will have to apply for recast on the web-site or manually at a bank branch. RBI on May 5 had permitted lenders to carry out a fresh round of restructuring of retail and MSME accounts. The resolution course of action will be invoked in 30 days and the last day for invocation is September 30, 2021. Thereafter, the resolution strategy will be implemented inside 90 days, or most recent by December 31, 2021. The moratorium period on loans will be a maximum of two years, beginning quickly following invocation.