SBI Offers Collateral-Free Loans To MSMEs In Odisha

Bhubaneswar: In a bid to help the MSME sector tide over the economic setback caused by COVID-19 pandemic, the State Bank of India (SBI) has decided to provide collateral-free loans under the Guaranteed Emergency Credit Line (GECL) scheme to the entrepreneurs.

Talking to mediapersons, here, Bhubaneswar circle CGM Ruma Dey said total loan amount for the MSME sector under the GECL scheme, which is a part of the Centre’s Atmanirbhar Bharat scheme, for 2020-21 fiscal has been pegged at Rs 950 crore.

Targeting to extend the loan to 48,168 MSMEs in Odisha, the bank has already sent approved offer letters to them, while 20,182 enterprises have been sanctioned Rs 644.82 crore so far.

The affected units will get 20 per cent of their fund-based limits with 12-month moratorium and repayment period of four years to meet the working capital requirements, Dey said.

Although the moratorium period for principal is 12 months, interest is payable at monthly basis. The interest rate ranges from 7.8 pc to 9.25 per cent. The principal has to be repaid in 36 equal instalments after the moratorium period.

The country’s largest public sector bank is also providing relief to the MSME borrowers by way of Common Covid-19 Emergency Credit Line (CCECL), which is 10 pc of fund-based working capital limits.