Covid-19: SBI opens emergency credit line for borrowers

Amid businesses getting affected due to vel coronavirus pandemic, country's largest lender State Bank of India has opened an emergency credit line to meet any liquidity mismatch for its borrowers.

ditional liquidity facility Covid-19 Emergency Credit Line (CECL), will provide funds up to Rs 200 crore and will be available till June 30, 2020, SBI said in a circular issued on Friday.

loan will be offered at an interest rate of 7.25 per cent with a tenure of 12 months.

With a view to provide some degree of relief to borrowers whose operations are impacted by Covid-19, it is decided to make available ditional liquidity credit facilities to eligible borrowers by way of -hoc facilities -- CECL to tide over current crisis situation, bank said in a circular to all branches.

bank said credit line is open for all standard accounts which have t been classified as SMA 1 or 2 as on March 16, 2020 are eligible to avail this credit line.

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Special Mention Accounts (SMA) was introduced to identify those accounts that has potential to become an NPA/stressed asset.

SMA-1 accounts are those where overdue period is between 31 to 60 days. while, in SMA -2 accounts overdue is between 61 to 90 days.

Borrowers can maximum avail 10 per cent of existing fund based working capital limits, subject to a cap of Rs 200 crore, bank said.

According to a recent survey conducted by industry body, Ficci, over 50 per cent of companies in country see impact of coronavirus on ir operations.

Nearly 80 per cent businesses have witnessed decline in cash flows due to global pandemic, it showed.

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