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Indian Overseas Bank introduces special loans for SHGs

PTI   

Indian Overseas Bank introduces special loans for SHGs
Business1 min read
Chennai, Apr 28 () Public sector Indian Overseas Bankhas unveiled a special loan scheme for members of self helpgroups with a maximum cap of Rs one lakh for a group, the banksaid on Tuesday.

The city-based bank said the eligibility of the borrowersis that they need to have a good track record and should haveavailed minimum two credit loans from the bank.

As per the Bank's criteria only those self help groupswhose existing loans are performing as on March 1, 2020 wereeligible under this scheme, which is valid till June 30, banksaid in a statement. The maximum loan amount for an individual is Rs 5,000while for a group it is Rs one lakh, the bank said. The loan would be sanctioned and disbursed within sixworking days and they are payable in 30 EMIs after initialmoratorium of six months. The rate of interest for the loans is 9.4 per cent. "Self Help Group borrowers are an important part of theeconomy... we are working to best of our ability to extend oursupport to SHGs in the wake of coronavirus", bank's ManagingDirector Karnam Sekar said.

"These loans will assist the SHGs pass through thedifficult times..", he added. The borrowers would not be charged with pre-paymentcharges or processing fee under the special scheme, it said. VIJ ROH ROH

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