Categories: Banking

SBI launches “Covid-19 Emergency Credit Line”

The State Bank of India has launched an additional liquidity facility “Covid-19 Emergency Credit Line (CECL)”. The facility has been launched by India’s largest lender State Bank of India to meet any liquidity mismatch for its borrowers in order to tide over the current crisis situation.

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About Covid-19 Emergency Credit Line (CECL):

With CECL, SBI will facilitate funds up to Rs 200 crore which will be available till June 30, 2020. CECL will be in the form of a 12-month demand loan at an interest rate of 7.25 per cent. The facility would be available for all standard accounts which have not been classified as Special Mention Accounts (SMA) 1 or 2 as on March 16, 2020. Under CECL facility, borrowers will be allowed to avail a maximum of 10% of the existing fund based working capital limits subjected to a cap of Rs 200 crore.

About Special Mention Accounts (SMA) 1 or 2:

Special Mention Accounts (SMA)-1 accounts are those where the overdue period is between 31 to 60 days while in SMA -2 accounts the overdue period is between 61 to 90 days.

Important takeaways for all competitive exams:

  • Chairperson of SBI: Rajnish Kumar; Headquarters: Mumbai; Founded : 1 July 1955.

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