State Bank of India is now offering emergency credit to meet liquidity needs of its borrowers. This is in the light of the travails caused by the coronavirus. The ad-hoc SBI COVID credit line will be called ‘COVID 19’ and it will be available up to 30 June 2020. The bank will charge 7.25% interest on borrowers under this account. All standard accounts as on 16 March 2020 and till the date of sanction are eligible for the SBI COVID 19 loan. However, standard accounts classified as Special Mention Accounts – SMA 1 (overdue between 30-60 days) and SMA2 (overdue between 61-90 days) are not eligible for availing credit facility.The maximum loan that that could be availed under this credit scheme is capped at Rs 200 crore. This special loan facility shall be made available as Fund Based Limits only. Borrowers can avail the sanctioned amount in one go. The facility will be considered as an exposure on the borrower.
