Because of the crisis happened in the country, many state owned bank have sanctioned the total INR 6.45 Lakh cr loan to many sectors such as retail, MSME and agriculture during the time from 1st March to 15th May.
On the same, the finance minister Nirmala Sitharaman said- “Loans worth over ₹6.45 lakh crore were sanctioned by PSBs during March 1 – May 15 for 54.96 lakh accounts from MSME, Retail, Agriculture & Corporate sectors; A notable increase compared to the ₹5.95 lakh crore sanctioned as of May 8. Public Sector Banks sanctioned over ₹1.03 lakh crore as emergency credit lines & working capital enhancements in the period March 20 to May 15, which is a substantial increase over the ₹65,879 crore that had been sanctioned up to May 8,”
Under this scheme, banks will provide the additional line of credit of 10 percent of the existing funds based on the capital limit and working capital. The maximum limit is INR 200 Cr.
Banks have also offered the moratorium on the loan repayment for 3 months till May 31st according to the guidelines of RBI. But since the lockdown is till May 31st, chances are high that the RBI can extend the moratorium on repayment of loans for more three months.
The executive director of Indiaforward, Abhishek Chauhan said -”It is high time that businesses are given at least one quarter of business operations before asking them to start addressing the loan obligations. An additional three-month moratorium by RBI is absolutely necessary both in the interest of businesses and the financial sector”.
The world is suffering and so as the economy of India due to the crisis happened all around the globe.