NE BUSINESS BUREAU
CHENNAI, April 23
The Chennai-based Indian Overseas Bank (IOB), has launched special credit facilities for the farming sector as a relief measure to fight against the pandemic Corona virus on April 4, says a release from the Bank.
This scheme is valid up to June 30. The new credit facility – Working Capital Demand Loan – Agri (WCDL-Agri) is available to all existing borrowers enjoying cash credit/ OD for sectors like Poultry, Dairy, Fisheries and other agriculture allied activities and also other infrastructure activities like cold storage & rural godowns. As per Bank’s rule only account that are Standard & Performing as on March 2020 are eligible to avail this loan facility.
In order to avail the facility, the applicants can submit their request to the concerned branch directly or through email. The sanctioned loan amount can be availed by the borrower at one go.
The loan will be sanctioned and disbursed by the Bank within 6 working days of receipt of required documents by the Bank. The WCDL is repayable in 6 monthly installments after an initial moratorium of 6 months. Interest will be serviced as and when debited.
Karnam Sekar, MD & CEO of Indian Overseas Bank said, “The COVID-19 pandemic has caused severe economic implications to the agriculture sector among others. We are working to the best of our ability to help our customers in the wake of coronavirus pandemic. Our efforts are aligned with the Govt. of India’s instructions to help all sectors in the economy to function properly and sustain amidst the crisis at hand. These loans will encourage more people to run their business for greater good of the society.”
The borrowers under the scheme will not be charged any processing fees or pre-payment penalty. 10% of the existing fund based working capital limit with a maximum of Rs. 10-crore for Poultry sector & Rs. 2-crore for other agriculture allied activities will be the quantum of loan disbursed under the scheme, a release from the bank said.
