Bank of Baroda will provide financial assistance of up to Rs 1 lakh to women self-help groups (SHGs) to help meet their funding demand amid the COVID-19 crisis. The bank has also announced an emergency credit line for farmers producer organisations (FPO/FPC) to deal with any liquidity mismatches. Under the Additional Assurance to SHGs-COVID19 scheme, the bank will provide support to existing SHGs’ facilities in the form of cash credit or overdraft or term loans.
The minimum loan amount is Rs 30,000 per SHG and maximum loan amount granted under the scheme is Rs one lakh per member, repayable in 24 months. The repayment for this scheme would be on a monthly or quarterly basis and the moratorium will be for six months from the date of disbursement.
The moratorium period is for a maximum of six months. For FPO/FPC, a limit of 10 per cent of the combined limits will be sanctioned with a maximum amount of Rs 5 lakh with the tenor of 36 months.