Baroda Covid Emergency Credit Line

Purpose:

To meet the temporary liquidity mismatch arising out of impact of Covid-19 pandemic.

Facility:

FBWC in the nature of short term loan/demand loan (one time).

Loan Amount:

Maximum 10% of the existing fund based working capital.

Limits (FBWC) subject to maximum of Rs. 200 crores. This is in addition to existing adhoc/excess/SLC/Gold Card Limit. Existing adhoc/excess shall be repaid on due date.

Tenor of Loan:

Door to door maximum 24 months.

Repayment moratorium – 6 months (maximum)

15% of the loan amount is repayable monthly/quarterly installment in first 6 months and balance 85% amount is repayable in next 12 months. Interest to be served as and when applied.

Validity of scheme:

The scheme was applicable upto 30.06.2021. As on date the scheme is discontinued.

Availability period:

The borrower can draw the sanctioned amount in part or in one go within 3 months of sanction.

Margin: NIL

However, 80% of proposed limits should be backed by the value of the stocks and receivables and 20% can be given on clean basis. In case of need, additional cover period of 3 months to be allowed in respect of receivables over and above presently allowed period till the closure of the facility.

Interest rate ROI for corporates: 1 year MCLR without SP.

ROI for MSME: BRLLR

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

Additional ROI at 0.25% shall be charged to specified borrower under market mechanism.

(Specified borrower is defined as borrower having aggregate sanctioned credit Limits of over Rs. 10,000

crores from the banking system.)

Security:

Extension of charges on the primary security/collateral security (present and future).

In case facility under consortium/multiple banking a time period of 30 days may be allowed for obtaining NOC for ceding of 1st pari passu charge on current assets from other member banks under consortium/MBA. ROC formalities to be completed as per extant guidelines.

Documentation:

As per the extant guidelines of Bank.

Processing Fee: Nil

Prepayment Penalty: Nil

Sanctioning authority:

Authority wise DLP specifically for captioned scheme, subject to compliance of Bank’s usual guidelines is as under:-

Note:

1. In any case, additional limits under Covid-19 should not exceed 10% of fund based working capital.
2. PSR noting to be done as per extant guidelines.
3. For higher limits, proposal to be referred to respective sanctioning authorities.

The proposed one-time exposure under this scheme shall not be considered/added for purpose of deciding DLP for review/renewal of the account in future till the closure of this facility.

Deviation:

Deviation in financial/non-financial parameter for sanctions under this scheme shall be considered by respective sanctioning authorities as defined above on merits.

Others:

1. The limit will be over and above the MPBF.
2. Our sanction shall be conveyed to the existing lenders in case of facility under consortium/MBA.
3. The facilities to be made available at the specific request of the borrower, stating specific impact on the business activity affected by COVID 19.
4. All other guideline of the Banks shall be applicable.
5. Zone to submit a consolidated monthly statement of sanction/availing under the scheme to be submitted to BCC of respective verticals (SMEs/LCB) as per the annexure enclosed.
6. Separate scheme code for captioned facility under BCECL to be created in Finacle by Finacle –Asset Team.