BENGALURU: Bank of Baroda has rolled out Baroda COVID Emergency Credit Line-BCECL to provide credit in the nature of short-term loan/demand loan to existing MSME (micro, small and medium enterprises) and corporate borrowers, who have been affected by COVID-19. The bank has decided to make the maximum 10 per cent of the existing Fund Based Working Capital Limit (FBWC), which is subject to a maximum of Rs 200 crore. This is in addition to existing adhoc/excess/SLC/gold card limit.
The interest rate for corporate borrowers will be one-year MCLR of 8.15 per cent without the standard premium, and for MSMEs, the rate of interest will be at repo-linked lending rate of 8 per cent.All standard accounts, that have not been classified as SMA 01 or SMA 02 as on March 26 this year and till the date of sanction, are eligible for loan under this scheme.
With a moratorium of six months (maximum), 15 per cent of the loan amount is repayable in monthly/quarterly instalment in the first six months, and the remaining 85 per cent is repayable in the next 12 months. Interest will be served as and when applied.
Eighty per cent of proposed limits should be backed by value of the stocks and receivables, and 20 per cent can be given on a clean basis. If need be, an additional cover period of three months will be allowed for receivables over and above the presently allowed period, till the closure of the facility.