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Baroda Covid Emergency Credit Line-BCECL) for providing Emergency Credit Line (Adhoc basis /onetime)

Name of the Facility

Baroda Covid Emergency Credit Line- BCECL Loan for providing Emergency Credit Line to support liquidity to the Existing MSMEBorrowers (Including Schematic Lending)/ Corporate & Non Corporate Borrowers / Agri borrowers enjoying limits under Food & Agro Processing Scheme, adversely impacted by COVID 19

Facility Type

FBWC in the nature of Demand Loan (One time)

Validity of Scheme

Facility to be sanctioned upto 30.06.2020. Drawdown will be permitted upto 31.07.2020 either in single tranche OR maximum of three tranches.

Purpose

To meet the temporary liquidity mismatch arising out of impact of Covid-19 pandemic involving payment of statutory dues / Salary / Wages/ Electricity Bill etc.

Eligibility

All standard accounts including SMA 0 and SMA 1 accounts, (dealing with our Bank as on 01.03.2020 as going concern) which have not been classified as SMA 2 with our Bank / Other Banks as on date of sanction, irrespective of their BOBRAM Rating

Loan Amount

Max. 10% of the existing Fund Based Working Capital Limits (FBWC) subject to maximum of Rs.200 crores.

Repayment

The loan to be repaid in 18 Monthly Installments after initial moratorium of 6 months from date of 1st disbursement. Door to Door tenor of 24 months.

Interest to be serviced as and when applied

Margin

Nil. However in cases where DP is calcuated based on value of the stocks and receivables, the limits to be backed by value of Stock & Book Debts as per stock statement. However, the existing limits need to be covered by the advance value of securities.

In cases where stock & book debt statements are not applicable for marking DP, the limits to be backed by extension of existing securities of the limits.

Interest Rate

RoI for Corporates/Non Corporate: 1 Yr MCLR without SP.

RoI for MSME: BRLLR

RoI for Food & Agro Scheme: 1 Yr MCLR without SP.

RoI to be linked to benchmark as applicable at the time of disbursement.

Additional ROI@0.25% shall be charged to specified borrower under Market Mechanism.

(Specified borrower is defined as borrower having Aggregate Sanctioned Credit Limits (FB) of over Rs 10000 Crores from the Banking system. )

Security

Extension of charges on the Primary Security/ Collateral Security and personal & Corporate Guarantee of Promoters/Concerns/Group as applicable. Wherever CGTMSE cover is available, it can be availed.

Time period for Security Perfection

Time period of -60- days is allowed for perfection of security and obtaining NOC for ceding of pari passu charge on existing securities (1st / 2nd charge as case may be) from other member banks under consortium /MBA.

Security creation and ROC formalities to be completed upfront whereever possible. However, the above timelines shall also be applicable in case security creation/ROC filing is not possible on account of non availability on revenue authority / registration authority / Closure of treasury etc. on account of COVID Outbreak.

Documentation / ROC Charge

  • Loan cum hypothecation Agreement,
  • Letter of Guarantee from Guarantors, wherever applicable.
  • Undertaking for execution of documents / perfection of the Securities / payment of stamp duty and fine thereof if any as per timeline permitted,
  • Board Resolution, wherever applicable
Note:
  • Format for Loan agreement includes Terms of Hypothecation. As such, no separate Hypothecation Agreement is required.
  • Wherever stamping is not possible on account of non availability of concerned authorty in view of COVID Outbreak, the documents may be obtained unstamped. However, as and when the authorities are available, Branch to make an application for impounding of document with the request for waiver of penalty and get the documents stamped.

Processing Fee

Nil

Prepayment Penalty

Nil

Others

  • The limit will be over and above the MPBF.
  • Existing adhoc/excess, if any, shall be repaid on due date.
  • In case of reassessment of working capital limits of the borrower, the said COVID Limits shall be subsumed under the revised limits.
  • Our sanction shall be conveyed to the existing lenders in case of facility under consortium / MBA.
  • The facilities to be made available at the specific request of the borrower, stating specific impact on the business activity affected by COVID 19.
  • In case of export finance, ECGC to be notified for the enhanced / additional limits
  • Only exposure from the banking sector is to be reckoned for the facility
  • IRAC norms shall apply to the facility
  • In case of Consortium accounts, the requirement of additional credit facilities to be discussed amongst member banks so as to have proper exchange of information/ risk sharing.

NBFCs/ HFCs/ MFIs shall not be covered under the scheme.

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