Canara Bank announces Personal Loan Scheme for Covid-19 Patients

The Canara Bank has announced healthcare, business, and personal loan schemes for its customers to provide relief amid the coronavirus pandemic. Under this scheme, the bank will offer loans from Rs 25,000 – Rs 5 lakh as immediate financial assistance to customers for the Covid-19 treatment during admission or post-discharge. The Canara Suraksha scheme will offer a moratorium of six months and the scheme will be valid till September 30, 2021.

Under this scheme, the bank will offer loans from over Rs 10 lakh to Rs 50 crore to registered hospitals, nursing homes, medical practitioners, diagnostic centers, pathology labs, and all other units engaged in servicing healthcare infrastructure. The loan to be offered at a concessional rate of interest will have a tenure of 10 years with a moratorium of up to 18 months, the public lender added.

The Canara Chikitsa will be valid till March 31, 2022. In this, the Canara Bank will be offering loans up to Rs 2 crore at a concessional interest rate for the manufacture and supply of healthcare products to registered hospitals and nursing homes or other manufacturers and suppliers.

The bank stated that there will be no processing fee for this loan. For micro, small and medium enterprises (MSMEs), there will be no collateral security, which the lender will cover under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), and the bank will bear the guarantee premium. The CGTMSE is meant to provide financial assistance to such kinds of industries without any third-party guarantee or collateral.

However, for the non-MSMEs, the collateral security will be a minimum 25 per cent. This scheme will also be valid till March 31, 2022. In May only, the Reserve Bank of India had announced Rs 50,000 crore special window to banks. It also allowed individual and small borrowers more time to repay their debt.

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