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State-run banks to lend up to Rs 5 lakh for COVID treatment

State run, banks, lend up, Rs 5 lakh, COVID treatment, coronavirus pandemic, corona updates, covid n
Image Source : PTI/ REPRESENTATIONAL.

State-run banks to lend up to Rs 5 lakh for COVID treatment.

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 treatment”, said a joint statement.

It further said that the state-owned 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 loans- loans 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.

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