Kovai Zone MSMEs get Rs 280 crore loan to tide over COVID 19 setbacks

The State Bank of India, Coimbatore Branch has sanctioned loans to 500 units and disbursed a sum of Rs.280 crores for MSMEs in Coimbatore Zone, consisting of Coimbatore, Nilgiris, Tirupur, Erode, Salem, Karur and Namakkal. This includes Coimbatore City having the loan disbursed to 152 units today covering Rs. 58 crores.

According to a statement from Coimbatore District Small Scale Industries Association (CODISSIA) and the Joint Council of Associations (JCA) in Coimbatore, the loans were as per the scheme announced by the Prime Minister and Finance Minister, Government of India, New Delhi, for having sanctioned a sum the Pre-Approved Loan Facility, Guaranteed Emergency Credit Line (GECL) for MSMEs due to COVID 19.

The loan is aimed to augment networking capital, meet operating liabilities and restart operations once the lockdown is over. Loan amount up to a maximum of 20% of Fund based outstanding as on February 29, 2020. Rate of Interest; 0.75% above EBLR (presently 7.05%) present effective rate. 7.80% p.a. and maximum of 9.25% p.a. during entire tenor of the loan. Interest is applied at monthly intervals.

The loan entails moratorium on principle for 12 months to be repaid (principal repayment), over 36 monthly instalments after moratorium. Interest is to be serviced as and when applied. Extension of charge over the existing primary and collateral securities including mortgages created in favour of the Bank (in case of Multiple Banking/Consortium, the security charge will be on pari-passu basis).

Besides the above 20, micro units, below Rs.10 lakhs were sanctioned an amount of Rs.1 crore under MUDRA scheme, according to Mr. S. Ravi Kumar, Dy. General Manager (B&O), State Bank of India.
CODISSIA and JAC have thanked the Prime Minister, Narendra Modi, Finance Minister, Nirmala Sitaraman, Tamilnadu Chief Minister Edappadi K Palanisamy and Managers of State Bank of India.

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