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AD-HOC LINE OF CREDIT COVID-19 by way of SLC (Stand by Line of Credit)

With a view to provide some relief to the industries in India, whose operations are impacted by COVID-19, for supporting the affected industries by making available additional credit facilities to the eligible existing borrowers by way of AD-HOC Line of Credit COVID-19 to tide over the current situation.

The features of Product (“AD-HOC Line of Credit COVID-19”) in detail are:

Parameter

Guidelines

Nature of the facility

AD-HOC Line of Credit COVID-19 by way of Working Capital over and above sanctioned limit.>

Purpose

To meet emergent liquidity mismatch arising out of COVID-19

Nature of Facility

Fund Based: Working Capital/Short Term Loan

Eligibility

All standard accounts excluding account classified as SMA 2 as on 23.03.2020 and till the date of sanction are eligible.

Quantum of Finance

  1. Maximum up to 10% of the existing fund based working capital credit facilities Maximum up to Rs.50 crores.
  2. In case of consortium advance, only our share of credit limits is to be reckoned for the purpose and the same should be communicated to the consortium lenders.
  3. Existing customers who have availed ‘Mahabank Credit +’ can also avail under this scheme after repaying the earlier limit under “Mahabank Credit+” scheme.
  4. The above facility will be in addition to the Assessed Bank Finance.
  5. 10% of sanctioned ADHOC Line of Credit COVID-19 may be sanctioned on clean basis for payment of operating expenses on case to case basis.

Tenure

Maximum up to 12 months.
MoratoriumMaximum period up to 6 months from the date of first disbursement.
Disbursal & RepaymentThe borrower can avail the sanctioned amount in one go or in tranches. The entire loan under the scheme have to repay within maximum period of 12 months from the date of disbursal or validity of sanction whichever is earlier.
In case the limits are availed in tranches then the repayment /liquidation of the tranches should be 12 months from the date of disbursal or validity of sanctioned limit whichever is earlier.
Borrower may make early repayment. In case of early liquidation / repayment of the loan/ tranche borrower may be allowed to apply again to drawdown in one go or in tranches. However, the subsequent drawls should also be liquidated as above.
  1. The facility will be considered as an exposure on the borrower and guidelines stipulated under the RBI Prudential Norms shall be adhered to.
  2. The facility shall be made available as Fund Based Limit only.
  3. Interest to be served as and when applied.
Margin
  • NIL for the AD-HOC Line of Credit COVID-19.
Rate of Interest
  1. Rate of interest sanctioned to regular working capital facilities will be applicable on fund-based credit facility under AD-HOC Line of Credit COVID-19
  2. Penal interest as applicable would be charged, if not repaid within stipulated period.
SecurityHypothecation of entire current assets of the borrower present and future. Extension of charge on the Primary Security / Collateral security.
GuaranteeExisting guarantors if any, to be continued
InsuranceComprehensive insurance of all the securities charged to the Bank should be taken with Bank clause
Processing FeeNo separate processing charge is to be recovered for Adhoc Line of Credit.
Prepayment ChargesNil
Documentation ChargesIt is to be recovered for Ad-Hoc Line of Credit COVID-19 one time as a part of total limits.
ValidityScheme will be in force upto 30.06.2020.
Other
  1. The limit will be over and above the Existing sanctioned limit.
  2. The Facilities will be made available at the specific request of the borrower, stating that the business has been adversely effected by COVID-19.
  3. IRAC norms as stipulated to Demand Loan shall be applicable.

 

To Download application form, click here.

You may send the completely filled application signed by authorized signatory to the following;

  1. Branch Email id / or
  2. Scanned signed copy may be sent to branch managers mobile number on whatsapp/ or
  3. creditcovid19@mahabank.co.in

If you do not have the branch email id, please follow the following pattern:

If your branch code is 3456 then the branch email id will be; brmgr3456@mahabank.co.in and bom3456@mahabank.co.in

The branch code is available in the cheque book. (omit zero on left) e.g. if the branch is 0014 then the branch email id will be: brmgr14@mahabank.co.in and bom14@mahabank.co.in