IOB to offer special loans of up to Rs 1 lakh to self-help groups

PTI, Apr 27, 2020, 7:10 PM IST

Mumbai: State-run India Overseas Bank (IOB) on Monday said it is offering special loans of up to Rs 1 lakh to self-help group (SHG) borrowers to help them meet their liquidity requirements amid the COVID-19 outbreak.

The loan will be given for three years, which includes the initial six months as a moratorium, the bank said in a statement.

“The maximum loan amount is Rs 5,000 per each member of the SHG with a cap of Rs 1 lakh for the group,” it said.

The lender is currently offering loans to SHGs at an interest rate of 9.4 per cent. The scheme is valid up to June 30, 2020.

To avail this scheme, the borrowers need to have a good loan repayment track record and should have availed a minimum of two doses of credit from the bank, the lender said.

Only those SHGs whose existing loans are standard and performing as on March 1, 2020, are eligible to avail loan under this special scheme.

SHG borrowers can submit their applications either to the branch directly or through business correspondents, it said.