Along with public and private banks in India, the Government is issuing loan schemes. Schemes for businesses hit by Coronavirus outbreak in the country.
Here are some of the top schemes for businesses hit by Coronavirus:
SBI Special CoronaVirus Funding Scheme
India’s largest lender – The State Bank of India has drawn a funding scheme to assist small businesses who’s operations are impacted by the virus.
News update by the Times of India stated that tSBI’s new scheme – the Covid Emergency Credit Line (CECL) will be in motion up till June 30. The scheme will be equivalent to 10% of the businesses working capital limit, subject to a cap of 200 crores.
You can avail the CECL at a rate of 7.25%. There is no processing fee or pre-payment penalty for this scheme. SBI is currently the first to launch this scheme, whilst other public sector units are set to follow suit.
Important things to know about the SBI COVID Loans Scheme:
- CECL will be in the form of a demand loan with a term of 12 months to help meet temporary cash flow needs.
- The loan scheme for businesses is available to all standard accounts who do not have overdue for over 30 days on Mar 16.
- Borrowers who have availed specialised loan products for small businesses are also eligible for the facility.
There is no link on the SBI website for this yet, here are some news items for this scheme:
The Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGTMSE) was launched by the Government of India (GoI) to make collateral-free credit available to the MSME sector.
While this scheme is not exclusively created by the Government to both new and existing enterprises are eligible for this loan coverage. Under the scheme, the MSME Ministry and the Small Industries
Development Bank of India (SIDBI) established a trust named the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to implement the Credit Guarantee Scheme.
A lot of businesses are temporarily shutting shop because they are unable to pay daily wages to employees. However, this Government scheme for Businesses hit by Coronavirus provides unemployment insurance to workers who have subscribed to the Employees’ State Insurance (ESI) scheme. It helps cover workers during the pandemic.
The ESI is a self-financing health insurance scheme for formal sector workers in India managed by the Employees State Insurance Corporation (ESIC).
Under the scheme, workers who become unemployed due to the Coronavirus get compensation in the form of the cash up to three months of unemployment. A condition of this scheme is that it can be availed only once in a lifetime.