: SBI announces to provide 10 per cent additional credit facility on FBWC limits #FinanceIndia #StockMarketNEWS New Delhi, Apr 8 (KNN) In a bid to provide relief to existing borrowers, State Bank of

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SBI announces to provide 10 per cent additional credit facility on FBWC limits #FinanceIndia #StockMarketNEWS
New Delhi, Apr 8 (KNN) In a bid to provide relief to existing borrowers, State Bank of India (SBI) has issued a circular to provide 10 per cent additional credit facility on Fund Based Working Capital (FBWC) limits.

With a view to provide some degree of relief to the borrowers whose operations are impacted by Covid 19, it is decided by the Bank to make available additional credit facilities to the eligible existing borrowers by way of ad-hoc facilities i.e. COVID 19 Emergency Credit Line (CECL) to tide over the current crisis situation, said SBI.

The SBI also informed that CECL scheme would be in force up to June 30 and it aims to meet the temporary liquidity mismatch arising out of Covid-19.

The bank will not charge any processing fee for this, and neither will there be any prepayment penalty. Borrowers will pay a fixed interest of 7.25 per cent.

All standard accounts which have not been classified as SMA 1 or 2 as on March 16 and till the date of sanction are eligible.

Existing customers who have availed special loan products like "SME Assist", "SLC for MSME" and "SLC for GST Input Credit" etc are also eligible for the facility, read the circular.

However, total additional exposure including the present facility should not exceed 25 per cent of the FBWC exposure.

The credit line will be limited to 10 per cent of the existing FBWC limits, up to Rs 200 crore, and the borrower can avail the sanctioned amount in one go.

Repayable in 6 equated monthly instalments after a moratorium period of 06 months from the date of disbursement of the loan. Interest to be served as and when applied, said the circular.