Public Sector lender Bank of Baroda will be providing financial assistance of up to Rs 1 lakh to women self-help groups (SHGs) in a bit to help them meet their funding demand amid the COVID-19 crisis.
The lender has also announced an emergency credit line dedicated to the farmers producer organisations (FPO/FPC) to handle the liquidity adversities.
Under the Additional Assurance to SHGs-COVID19 scheme, the bank will be offering support to existing SHGs’ facilities in the form of cash credit or overdraft or term loans.
“The minimum loan amount is Rs 30,000 per SHG and maximum loan amount granted under the scheme is Rs one lakh per member, repayable in 24 months,” the bank said in a statement.
The repayment for this scheme would be done in monthly or quarterly basis and the moratorium will be given for a period of six months from the date of disbursement.
For FPO/FPC, a limit of 10 percent of the collective limits will be cleared with a maximum amount of Rs 5 lakh with the tenor of 36 months. The moratorium period is for a maximum of six months.
For borrowers representing the dairy and fisheries segment, the lender will offer instant credit to the farming community to handle emergent funds requirement for farm maintenance and other farm-related activities due to COVID-19.
“The limit stands at 10 percent of other agriculture sanction limit (i.e. minimum Rs 10,000) and maximum Rs 50,000 for existing regular investment credit agriculture accounts,” it said.
The lender will also providing an instant credit to crop loan borrowers for the need pertaining to agriculture and related domestic purposes.
The loan limit under the scheme is 10 percent of KCC sanction limit — minimum Rs 10,000 and maximum Rs 50,000 — for existing regular KCC holders.