Understand How MSME Certified Units can apply for Business loans from SBI, HDFC Bank, ICICI Bank, and Others?

Answer 1

In view of the economic distress caused by the COVID-19 pandemic, the Finance Ministry unveiled a Rs 20 Lakh Crore comprehensive package, known as the Emergency Credit Line Guarantee Scheme (ECLGS). This package is in aid of the Micro, Small and Medium Enterprises (MSMEs) sector, addressing working capital needs, operational liabilities, and restart business impacted due to the COVID-19 crisis.

This scheme is available up to March 31, 2021, or on reaching the threshold stipulated by the Government of India under the Emergency Credit Line Guarantee Scheme (ECLGS). The working capital term loan (WCTL) comes with a tenure of 48 months, with a principal moratorium for the first 12 months.

The government had announced Rs 3 lakh crore emergency credit line guarantee scheme (ECLGS) for MSME under the “Aatmanirbhar Bharat Abhiyan” package in order to mitigate the stress caused by the lockdown this scheme valid till month of the October including Collateral free loans, additional debt and equaty infusion.

Finance minister of India Nirmala Sitharaman office tweeted that the public sector banks (PSBs) have sanctioned loan worth 3200 crore on June 1, 2020. The loans avail by non-banking financial companies (NBFCs) as part of the government initiative are not required to pay any guarantee and no collateral is required. The tenure has been fixed at four years, with a moratorium of 12 months on the principal payment.

Banks that provide MSMEs loans are

 State Bank of India

 ICICI Bank

 HDFC Bank

 Union Bank of India

 Indian Bank

 Central Bank of India

 Allahabad Bank

 Oriental Bank of Commerce

 Bajaj FinServ