Coronavirus Outbreak: Bank of Baroda will provide financial support to women SHGs, FPOs

State-run Bank of Baroda on Tuesday said it will provide financial assistance of up to Rs 1 lakh to women self-help groups (SHGs) to help meet their funding demand amid the COVID-19 crisis

Press Trust of India April 07, 2020 16:25:56 IST
Coronavirus Outbreak: Bank of Baroda will provide financial support to women SHGs, FPOs

Mumbai: State-run Bank of Baroda on Tuesday said it will provide financial assistance of up to Rs 1 lakh to women self-help groups (SHGs) to help meet their funding demand amid the COVID-19 crisis.

The bank has also announced an emergency credit line for farmers producer organisations (FPO/FPC) to deal with any liquidity mismatches.

Under the Additional Assurance to SHGs-COVID19 scheme, the bank will provide support to existing SHGs' facilities in the form of cash credit or overdraft or term loans.

"The minimum loan amount is Rs 30,000 per SHG and maximum loan amount granted under the scheme is Rs one lakh per member, repayable in 24 months," the bank said in a statement.

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Representative image. Reuters

The repayment for this scheme would be on a monthly or quarterly basis and the moratorium will be for a period of six months from the date of disbursement.

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For FPO/FPC, a limit of 10 percent of the combined limits will be sanctioned with a maximum amount of Rs 5 lakh with the tenor of 36 months. The moratorium period is for a maximum of six months.

For borrowers in the dairy and fisheries segment, the lender will provide instant credit to the farming community to meet emergent funds requirement for farm maintenance and other farm-related activities due to COVID-19 .

"The limit stands at 10 percent of other agriculture sanction limit (i.e. minimum Rs 10,000) and maximum Rs 50,000 for existing regular investment credit agriculture accounts," it said.

The lender will also give an instant credit to crop loan borrowers for the requirement in agriculture and related domestic purposes.

The loan limit under the scheme is 10 percent of KCC sanction limit -- minimum Rs 10,000 and maximum Rs 50,000 -- for existing regular KCC holders.

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