A special borrowing scheme has been launched by the Indian Overseas Bank (IOB) for self help groups (SHGs). IOB has taken this initiative to help the SHGs in order to overcome the difficulties posed by COVID-19.
Important details of the special borrowing scheme:
- Each member of a self help group can avail a maximum loan amount of Rs 5,000 while there is a cap of Rs 1 lakh for the group.
- A self help group with history of minimum two loans from Indian Overseas Bank and good track record will be eligible for this loan facility. Also, only those SHGs are eligible to avail this special scheme whose existing loans are standard and performing as on March 1, 2020.
- The Special borrowing scheme can be availed by interested borrowers till June 30, 2020 and can apply through branches directly or through business correspondents.
- Bank will sanction and disburse the loans within six working days, without charging any processing fee or pre-payment fee for this loan scheme.
Important takeaways for all competitive exams:
- Managing Director & Chief Executive Officer of Indian Overseas Bank: Karnam Sekar.