SBI & IBA launch new loan products for all PSU Banks

Kolkata, May 30 (UNI) State Bank of India (SBI) Chairman Dinesh Khara, IBA Chairman Rajkiran
Rai and IBA Chief Executive Sunil Mehta on Sunday addressed a joint press conference to
announce the various support measures and launch of new loan products by all Public Sector
Banks to mitigate the impact due to resurgence of Covid pandemic.
While the economy had revived well from the beginning of 4th quarter of FY21, its resurgence
since April 21 has impacted the lives of individuals, and cash flows of businesses and MSMEs.
To address the disruptions caused by the resurgence of Covid pandemic, Reserve Bank of
India (RBI) in the statement dated May 5 last has announced several measures such as:
Term Liquidity Facility of Rs 50,000 crore to Ease Access to Emergency Health Services
(Covid Loan Book),
Resolution Framework 2.0 for COVID Related Stressed Assets of Individuals, Small
Businesses and MSMEs,
Re-assessment of Working Capital Limits etc.,
Further, Central Government with a view to providing support to MSMEs, safeguard livelihoods
and to help in seamless resumption of business activity and also to give fillip to finance the critical healthcare facilities, has announced modifications to the very successful ECLGS Scheme.
Government has enlarged the scope of ECLGS. DFS, GOI has announced today the contours
of an expanded ECLGS 4.0 with 100% guarantee cover by NCGTC for loans up to Rs.2 Cr. to hospitals, nursing homes, clinics for setting up on site Oxygen Generation plants.
Validity of ECLGS has been extended to 30.09.2021. Disbursement under the scheme is
permitted up to 31.12.2021.
Operating Guidelines will be issued by NCGTC.
In the backdrop of the above, Public Sector Banks have undertaken.
To implement the expanded ECLGS measures
To make the loan products available to business entities to improve the healthcare infrastructure
and to individuals to meet the expenditure for covid treatment
To put in place systems and processes for seamless implementation of RBI’s Resolution
Framework 2.0
Banks are expected to create a Covid loan book under the RBI Guidelines.
Accordingly, 3 under noted products have been designed to provide fresh lending support to
vaccine manufacturers, hospitals/dispensaries, pathology labs, manufacturers and suppliers of
Oxygen, Ventilators, importers of vaccines & Covid related drugs logistics firms and patients
for treatment.
Healthcare Business Loans for setting up Oxygen Plants under ECGLS. Loan upto Rs.2
Crores capped @ 7.5% for hospitals, nursing homes for setting up Oxygen plant, backed by
100% guarantee cover of NCGTC under ECLGS 4.0.
Business loans for Healthcare Facilities upto Rs.100 Crores To setup / expand healthcare infrastructure and to manufacturers of healthcare products
Unsecured personal Loans to Individuals from Rs.25000 to Rs.5 lakhs for Salaried,
non-salaried and pensioners for meeting Covid treatment.
All the above schemes are being offered by PSBs at concessional interest rates and will
form part of the Covid loan book.
In regard to Resolution Framework 2.0, PSBs have formulated Templated Approach for
restructuring of Loans.
Business Loans-Three categories:
Upto Rs 10 lakhs : Standardised Restructuring Offer to Certain Small Businesses and
MSMEs
Above Rs 10 lakhs and upto Rs 10 Crores
Above Rs 10 Crores
Loans to Individuals:
To have seamless implementation in effective manner, PSBs have come out with strategic
approach
Standard templates, portal and branch based approach.
Graded approach for restructuring
Standard application and assessment formats
Standard and simplified documentation
Common outreach approach
The above initiatives taken by all the PSBs by coming together and announced today is a
significant step in the right direction to mitigate the financial impact due to Covid resurgence
on all affected segments of the borrowers.
The Chairman of SBI, Chairman IBA and CEO, IBA also explained the various outreach
initiatives being taken by them to reach out to all the eligible customers for restructuring of
loans availed by individuals, Businesses and MSMEs under Resolution Framework 2.0 of RBI.
UNI BM