Working Capital Funding & Relief Solutions

Working Capital Relief Measures:

In order to overcome the liquidity woes due to the pandemic. Various financial institutions have taken steps to ease the working capital norms to ensure sufficient liquidity into the system. To name a few major banks/financial institutions, we have compiled their policy revisions as follows:

State Bank of India (SBI):

Businesses may request the bank to reassess their working capital requirements on account of disruption of their cash flows or elongation of their working capital cycle. Also we may approach the bank for reduction in margin on NFB facilities (LCs/ BGs etc) or relief in Security. This is in addition to the 3 months moratorium on repayment of term loans.
However decision on additional working capital requirements or NFB facility will be taken on case- to-case basis after due diligence.
For more details on policy note, please click here

Punjab National Bank (PNB): 

The Bank has stated that the “drawing power” will be calculated by reducing the margins and/or by reassessing the working capital cycle. It is pertinent to mention that after the merger of United Bank of India & OBC into PNB, all the branches of the merged banks are also assessing the working capital requirements in the light of new norms.
For more details on the policy note, please click here

Union Bank of India:

The business units may request a reduction in margin on fund-based / non-fund-based working capital for arriving at DP. The decision will be taken as per the policy formulated by the bank & genuineness of the request.
Also, those who have an account in Andhra Bank or Corporation Bank are also eligible to take benefit from these policy revisions due to the merger of these banks with Union Bank of India.
For more details on the policy note, please click here

 
Bank of Baroda: 

Bank of Baroda has introduced an emergency credit line under the name of “Baroda Covid Emergency Credit Line—BCECL” to provide an emergency credit line to existing MSME and corporate borrowers affected by the impact of COVID-19. To this effect, the bank has decided to make a maximum of 10% of the existing FBWC subject to a maximum of Rs. 200 crore. This is in addition to the existing ad hoc/excess/SLC/Gold Card limit.
All account holders of Dena Bank & Vijaya Bank are also entitled to avail themselves of the benefits of this scheme.
For more details on the policy note, please click here

Indian Bank: 

To overcome the difficulties faced by micro & small enterprises (MSEs), Indian Bank has proposed to extend additional finance to meet the crisis. A new product “IND-MSE COVID EMERGENCY LOAN” has been launched to help MSEs in meeting temporary liquidity mismatches.
All the MSEs having a bank facility with Allahabad Bank are also eligible to avail the benefits of the scheme.
For more details on the policy note, please click here

Small Industrial Development Bank of India (SIDBI): 

To provide financing for MSMEs who are manufacturing any products or providing any services related to fighting the coronavirus.
Also a special window is available for financing the healthcare sector, including hospitals, nursing homes, clinics, etc., for their requirements related to fighting the coronavirus.
For more details on the policy note, please click here

There are many more financial institutions that have introduced the liberal norms to overcome the challenges posed by the pandemic. For details, please write at ceo@nkbkredit.com