Canara Bank releases emergency credit facilities for MSMEs
May 25, 2020
New Delhi [India], May 25 : To meet a temporary liquidity mismatch arising out of the COVID-19 outbreak, Canara Bank has announced a new credit support scheme for borrowers affected by the pandemic.
The scheme extends a quick and hassle-free loan to overcome temporary liquidity mismatches for payment of statutory dues, salaries, wages, electricity bills and rents.
The public sector bank has since sanctioned six lakh loans amounting to Rs 4,300 crore under agriculture, self-help groups and retail categories.
Besides, the lender sanctioned more than Rs 60,000 crore of advances to corporates and micro, small and medium enterprises (MSMEs) since March.
"We are sure that once the lockdown is completely lifted, our customers will be able to avail the sanctioned facilities to the full extent and improve their business," said Managing Director and CEO L V Prabhakar in a statement.
The government has announced an emergency credit line of 20 per cent of outstanding credit as on February 29 to MSME borrowers having Rs 25 crore outstanding with an annual turnover up to Rs 100 crore.
The credit line is 100 per cent guaranteed by the government. The facility can be availed up to October 31.
Besides, as per the Reserve Bank of India's regulatory package on COVID-19, the moratorium has been extended on payment of all installments for term loans falling due from March 1 to August 31.
