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Union Bank sets up emergency funding line for corporates, MSMEs

PTI   

Union Bank sets up emergency funding line for corporates, MSMEs
Business1 min read
Mumbai, Mar 26 () Public sector lender Union Bank of India on Thursday said it has set up an emergency funding window for its MSME and corporate customers impacted by COVID-19 outbreak.

The bank is offering a maximum 10 per cent of the existing working capital limit to accounts that are standard as on February 1, 2020, a statement said.

The repayment period of these loans will be 36 months, including maximum moratorium of 12 months. The window is open till September 30, 2020.

"This credit facility is available at NIL margin with competitive rate of interest - 8 per cent fixed rate of interest, which is one-year MCLR as on date," the bank said.

All MSME/agriculture borrowers are eligible for a loan up to Rs 10 crore and others up to Rs 50 crore.

Public sector banks, including State Bank of India, Bank of Baroda and Indian Bank, have already rolled out similar lines of credit for their customers to meet any liquidity mismatches. HV BALBAL

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