The Indian Overseas Bank has launched a special scheme for the people to help those who are tide over the setbacks caused by the COVID-19 lockdown. The Indian Overseas Bank (IOB) on Monday has come up with a unique borrowing program for self-help groups (SHG). The maximum loan amount for them is decided to be Rs 5,000 per member of a self-help group (SHG) with a cap of Rs 1 lakh for the group. The Indian Overseas state-owned lender also said that all the interested borrowers can apply through branches directly or indirectly through business columnists also as the IOB said the loans would be sanctioned and disbursed within six working days.
The Repayment of loans its Charges, Fees, and Interest rates are quick and simple to follow, the loans are to be repaid in 30 EMIs after a preliminary moratorium of six months, adding a 9.4 percent rate of interest for these loans. The bank mentioned that it will not charge any processing fee or pre-payment fee for this particular loan scheme.
SHG borrowers have always stayed an important part of the economy as they are working to the best of their ability to extend our support to SHGs and provide help to them in the path of Coronavirus. Banks’ efforts are aligned with the Government of India’s advice to assist all sectors which are in the economy to function appropriately and sustain and counter the crisis. The loans will help the self-help groups to get through the worst time they are facing in the present time and to counter the COVID. Also, these loans will not relate to the canon of the SHG. Moreover, to motivate this particular segment of borrowers with applying no additional security will be compelled to fulfill from the group.