PSBs to lend up to Rs 5 lakh for COVID treatment
Banks will provide healthcare loans to set up oxygen plants under revised ECGLS norms
NEW DELHI: Public sector banks (PSB) will provide unsecured personal loans of up to Rs 5 lakh to individuals for meeting their expenses of COVID treatment.
The decision, which comes in the wake of the severe second wave of COVID-19, was announced jointly at a press conference by the State Bank of India and the Indian Banks’ Association (IBA). PSBs will provide “unsecured personal loans to individuals from Rs 25,000 to Rs 5 lakhs for salaried, non-salaried and pensioners for meeting COVID,” a joint statement read.
It further said that the stateowned banks will provide healthcare business loans for setting up oxygen plants under the revised ECGLS norms. The Finance Ministry earlier in the day announced that under ECLGS 4.0, loans of up to Rs 2 crore, capped at 7.5 per cent, would be given to hospitals, and nursing homes for setting up oxygen plants, backed by 100 per cent guarantee cover of the NCGTC.
They would also offer business loans for healthcare facilities up to Rs 100 crore to setup or expand healthcare infrastructure and to manufacturers of healthcare products. “All the above schemes are being offered by PSBs at concessional interest rates and will form part of the COVID loan book,” said the statement.
In regard to the ‘Resolution Framework 2.0’, PSBs have formulated a templated approach for restructuring of loans. Three categories have been formulated for the resolution of business loansloans of up to Rs 10 lakh, Rs 10 lakh to Rs 10 crore and those above Rs 10 crore.
Further, in terms of loans to individuals also, PSBs have come out with a strategic approach to have seamless implementation in effective manner.
The Centre has modified the Emergency Credit Line Guarantee Scheme (ECLGS) to bring the civil aviation sector under the ambit of the scheme.
Civil aviation minister Hardeep Singh Puri on Sunday said airlines, airports, air ambulances and airports can avail additional funding facility under the ECLGS which will help alleviate their “stressed cash flows”.
Referring to the scheme, wherein aviation sector was included on Sunday, the minister said that it can help civil aviation meet their working capital term loan and additional term loan needs. In a release, the finance ministry on Sunday said that on account of the disruptions caused by the second COVID wave to businesses across various sectors of the economy, it has been decided to enlarge the scope of ECLGS. The civil aviation sector will be eligible under ECLGS 3.0, it added. In March, ECLGS was introduced to cover business enterprises in hospitality, travel & tourism, leisure & sporting sectors.
“To alleviate stressed cash-flows of scheduled & non-scheduled airlines, chartered flight operators, air ambulances & airports, an additional funding facility of upto 40% of their total credit outstanding, subject to a cap of
FURUH H[WHQGHG under ECLGS 3.0,” he said in a series of tweets.
According to him, civil aviation entities can thus meet their working capital term loan and additional term loan needs from banks through fully government-guaranteed financial assistance with a tenor of up to six years.
Operational guidelines have been issued by National Credit Guarantee Trustee Company Ltd on Sunday, he added.