- Bank has taken an initiative in disbursing the loans to all eligible existing customers at a faster pace and hassle-free
In order to meet the temporary liquidity mismatch arising out of COVID-19 outbreak, Canara Bank has announced ‘CANARA CREDIT SUPPORT’ for all of their borrowers who have been affected by COVID-19. The Canara Credit Support is extended as a quick and hassle-free loan to overcome the temporary liquidity mismatches for payment of statutory dues, salary/wages/electricity bill, rent etc.
Canara Bank has since sanctioned nearly 6.00 lakh loans amounting to Rs.4300 crores under agriculture, SHGs and Retail categories. The bank has employed various strategies viz. SMS, Call Centres, emails, personal calls to reach out to the eligible borrowers to explain the facility in order to sanction the loan.
Canara Bank is the front-runner in disbursement and providing customer experience excellence in such unprecedented times. The Bank has also sanctioned more than Rs.60,000 crores of advances to the Corporates and MSMEs from Mar, 2020 till date.
Further, the Government of India has announced emergency credit line of 20% of the outstanding credit as on 29th Feb. 2020 to MSME borrowers having Rs.25.00 Crore outstanding with an annual turnover upto Rs.100.00 crores. The credit line is 100% guaranteed by the Government of India. The facility can be availed upto 31.10.2020 at the convenience of the borrower and as per the terms and conditions.
Shri L V Prabhakar, MD & CEO, Canara Bank said, “Canara Bank has proved its customer-centricity and customer responsiveness in the disbursement of the COVID-19 schemes. All our branches and offices have been continuously working to reach out to all our customers in this hour of need. We are sure that once the lockdown is completely lifted, our customers would be able to avail the sanctioned facilities to the full extent and improve their business.
Steps taken by the bank to aid existing borrowers and for giving boost to all the businesses are as follows:
- All Standard Accounts including SMA 0 and SMA 1 are eligible to avail this facility.
- 10% of existing fund based working capital limits or Rs 150 Crores whichever is lower is extended under this facility. This limit is over and above the eligible maximum permissible Bank Finance to the unit.
- The facility is given for a period of 24 months with 6 months moratorium.
- The loans are priced very competitively with no processing charges, no margin and no additional security.
Apart from the above facility, as per RBI regulatory package on COVID-19, moratorium has been extended on payment of all instalments for term loans falling due between March 1st 2020 to August, 31st, 2020. In respect of the Working Capital facilities sanctioned in the form of Cash Credit/Overdraft, interest payment has been deferred up to August 31, 2020. In order to ameliorate the difficulties of the borrowers in repaying the accumulated interest, borrowers can convert the accumulated interest to a Funded Interest Term Loan payable by March 31, 2021.
About Canara Bank:
Widely known for its customer centricity, Canara Bank was founded by Shri Ammembal Subba Rao Pai, a great visionary and philanthropist, in July 1906, at Mangalore, then a small port town in Karnataka. The Bank has gone through various phases of growth trajectory over hundred years of its existence. Growth of Canara Bank was phenomenal, especially after nationalization in the year 1969, attaining the status of a national level player in terms of geographical reach and clientele segments. Eighties period was characterized by business diversification. In June 2006, the Bank completed a century of operations in the Indian banking industry. The eventful journey of the Bank has been characterized by several memorable milestones.
After amalgamation of Syndicate Bank into Canara Bank on 01.04.2020, the bank has attained the position of 4th largest Public Sector Bank in the country with a total business of Rs 15, 53,792 crores. With 10403 domestic branches, 13448 ATMs and about 6000 Business Correspondents, the Bank has got unparalleled potential to become the numero uno nationalized bank in the country with a premier position in the comity of Indian banks.