With the announcement of Relief Packages of Rs. 20 Lacs crores to revive the Economy by the Finance Minister, large number of entrepreneurs are puzzled as how to avail the benefits from these schemes? Where to apply for loans? What could be the interest benefit & so on. This article is an attempt to clarify the doubts & confusion to some extent.
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REVISED MSME CLASSIFICATION |
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Composite Criteria: Investment & Annual Turnover |
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| Classification | Micro | Small | Medium |
| Manufacturing & services | Investment <1 Cr. & Turnover < 5 Cr |
Investment<10 Cr. & Turnover>< 50 Cr. | Investment < 20 Cr. & Turnover < 100 Cr. |
♦ Covid Emergency Credit Line Scheme
- Almost all PSBs (SBI, PNB, Bank of Maharashtra, Union Bank of India, Bank of Baroda & others are offering this scheme with slight variants in terms & conditions.
- This facility is available only for existing customers whose account is under standard /SMA-0 and SMA-1 as on date of sanction of this facility.
- Limit shall be maximum 10% of the existing Fund Based Working Capital Limits (FBWC).
- Processing fees- Nil
- Fill the application form & can submit through registered email or by submitting in branch. For more details contact your branch personally.
♦ Other Schemes are as follows:
| Scheme | Eligibility | ROI ,Tenure & Amount | Documents required | Others |
| Punjab National Bank SAHYOG COVID 19 Personal Loan Scheme for Individuals | All salaried permanent/ confirmed employees of Central/State Govt./PSUs and all reputed organizations/ institutions including schools and colleges, autonomous bodies/ nursing homes/ hospitals who are drawing their salary through accounts in PNB (account holders with erstwhile OBC and UBI are also eligible) | ROI: 8%-8.5% (approx)
Repayment period: 36 months. Loan Amount: 3lakhs |
Submit Application form with complete details required. | Max age of applicant:60 years
Processing fees: nil |
| Punjab National Bank Aabhar Rin COVID 19 Personal Loan Scheme for Individuals | All pensioners who draw their pension through branches of PNB. | ROI: 9.05% onwards
Repayment Period: Maximum 36 months( if already having a pension loan) Maximum 60 months (new applicant) Loan Amount : Maximum of Rs.2 Lakh or three times of the average of last 6 months pension credited in the account whichever is lower. |
Submit Application form with complete details required. | Applicant should be less than 75 years old at the time of application.
Validity-Upto 30.06.2020 Processing fees: nil |
| PNB-Liberalised Working Capital assessment (LWCA) model for MSME borrowers having Limits above 5.00 Crore” | All existing MSME borrowers are eligible. Loan account with the Bank should be a Standard Asset. NWC should not be negative as per the last renewa | ROI- Contact Bank branch.
Loan Amount : Enhanced limits will be provided .The assessment method is liberalised to provide financial assistance to the MSME borrower. |
The request letter can be submitted either physically or through registered e-Mail ID.
Balance sheet for FY21. Reasons for the increased/ decreased/ proposed holding levels of inventory. Level of sundry creditors and receivables. The credit period allowed to buyers The borrower should submit reasons for changing the estimates from the previously submitted information. |
No additional security required. Extension of Charge will be carried out on the existing Collateral Security.
Validity: 31.05.2020 Processing fees: nil |
| Liberalised Working Capital assessment (LWCA) model for MSME borrowers having Limits upto 5.00cr (including Enhanced Portion) | All existing MSME borrowers are eligible. Loan account with the Bank should be a Standard Asset. | ROI– Contact Bank branch.
Loan Amount: Maximum amount is 33% of the revised projected annual turnover. However enhanced Working Capital Limit under this scheme cannot go beyond 5.00 cr. |
The request letter can be submitted either physically or through registered e-Mail ID. Simple application along with reasons for changing the estimates from the previously submitted sales turnover. Revised projected turn over for FY 21. | No additional security.Extens ion of Charge on the existing Collateral Security.
Validity: 31.05.2020 Processing fees: nil If there is enhancement proposed on account of reassessment, any adhoc limit (Like CCECL, SLC etc) sanctioned will be subsumed in this enhanced limit. |
| Bank of India COVID-19 Personal Loan for Individuals | Salary account holders of BoI (if salary has been received in BoI account for at least(12 months)
All existing Bank of India personal loan and home loan borrowers (irrespective of salary account tie-up) Not available to current/ex-staff of Bank of India |
ROI: 7.25%p.a
Loan Amount: Max 5lakhs subject to 3times of monthly income as per last ITR(for self employed) & 3 times of latest gross salary (for salaried) Tenure: 36 months including moratorium period of 6 months. |
Completely filled application form KYC Docs Salary Slip/ ITR | |
| Bank of Maharashtra Emergency Credit Line – Personal Loan Scheme COVID-19 for Individuals | All standard Housing Loan account where security charge is completed in favour of Bank & Repayment started. Existing Housing Loan borrowers who have already availed Personal Loan are also eligible under the new scheme subject to deduction norms. | ROI: 8.45% onwards
Loan Amount: For Salaried ->Ten (10) times the latest monthly gross salary income subject to maximum loan limit of Rs.3 lakhs. For Non Salaried → 60 % of Latest annual Income based on ITR subject to maximum loan of Rs 3 Lakhs Tenure: The loan should be fully adjusted 3 months prior to Closure of Housing Loan. |
1.Application form duly signed along with guarantor’s form
2.Assets & Liabilities form 3.Proof of income (last 3 months‘ Salary Slips showing all deductions or latest Form 16) duly attested by the employer 4.Proof of employment (copy of the employment order, Photo Identity Card issued by the employer, employee number etc) 5.Form 16 / ITR KYC docs |
Validity: Up to 30/06/2020
Deductions Norms: Not exceed 70% of the gross annual income including proposed EMI |
| Baroda personal loan covid 19 by bank of baroda (bob) for individuals | Customers with existing home loan (all variants), loan against property or auto loan with BOB.
Should have a minimum relationship of 6 months with the bank where: Loan should be fully disbursed and moratorium period is completed. Minimum three instalments are paid. Standard account till 29.02.2020. Minimum credit score of applicant should be 650 |
ROI : BRLLR (Baroda repo linked lending rate) + sp+ 2.75% per annum with monthly rest.
Tenure: Minimum: rs.25,000/- max:rs.5.00 lakhs (in case of existing car loan customers subject to terms & conditions) |
Application form duly completed. Contact branch for more details regarding documentation. | Validity: Up to 30/06/2020 Non-individual’ s and borrower enjoying ODlimits are not eligible.
Processing charges: Rs. 500 plus applicable gst |
| Ind-covid – emergency salary loan by indian bank for salaried individuals | Permanent govt /quasi govt / mncs / board/other reputed company employees with minimum 2 years of service in the current organization who have salary account with indian bank.
2) existing Indian bank home loan borrowers (irrespective of salary account maintained with Indian bank). 3) existing borrowers of Indian bank salary loan. |
ROI: 9.50% p.a. Fixed rate
Tenure: up to 36 months including moratorium period of 6 months Loan amount: 20 times gross monthly salary up to a maximum of Rs. 2 lakh |
Application form duly completed. Contact branch for more details regarding documentation. | CRS retirees and EPF pensioners are not eligible for Ind-covid emergency pension loan
Processing fees: nil |
| Indian overseas bank insta pension-covid-1 9 relief loan for individuals | Eligible applicants:
All central govt, defence, state govt, tneb pensioners, retired iob employees, etc. Whose original pension payment order (ppo) remains in the custody of indian overseas bank Other pensioners, such as pensioners of municipal corporations, state govt pensioners, ex- gratia pensioners, etc., whose pensions are disbursed by government treasuries by means of cheques drawn in favour of the bank, as per mandate of the pensioner Family pensioners of the above mentioned categories are also eligible |
ROI:10% onwards
Max amount: 5lakhs (subject to category wise eligibilty amount) |
Application form duly completed. Contact branch for more details regarding documentation. | For pensioners up to 70 years: either guarantee from spouse or any one of the legal heirs or from third party For pensioners above 70 years and for family pensioners: eit her guarantee from spouse or any one of the legal heirs. If spouse/legal heir is not available, third party guarantee can be obtained |
For Bank specific details, kindly visit the following links:
https://www.pnbindia.in/covid-schemes.html
https://www.unionbankofindia.co.in/english/celc.aspx
https://www.indianbank.in/departments/ind-mse-covid-emergency-loan/
https://www.bankofindia.co.in/COVID19PersonalLoan
https://www.bankofmaharashtra.in/personal loan covid 19
https://www.bankofmaharashtra.in/ad hoc line of credit covid 19 revised
https://www.bankofbaroda.in/baroda-personal-loan-covid-19.htm
https://www.bankofbaroda.in/baroda-covid-emergency-credit-line-bcecl-for-providing-emergency-credit-line-a dhoc-basis-onetime.htm
https://www.iob.in/Covid-19-%E2%80%93-line-of-support-for-msme-scheme
https://www.iob.in/Iob-insta-pension-covid-19-relief-loan
Sources: Banks official sites & links mentioned above Notifications by RBI
Author Bio
namaskar sar humko please urgent mein loan chahie bahut garib aadami hai Mera railway sab bik Gaya hai sar koi Kam Nahin hai humko urgent please help me sir
If any partnership firm is not registered as as MSME can it registered under msme now and vail the loan benefit
Thank you for the Post. It helped me to conduct webinar on these Schemes