SBI launches new business loan scheme for healthcare sector: Details here

The country’s largest lender, the State Bank of India (SBI), launched a new business loan program “Aarogyam Loan” for the healthcare sector on Thursday to extend loan support in the face of the novel coronavirus pandemic.

The new loans can be used as cash advance, term loan, bank guarantee, letter of credit, the lender said in a statement.

Advantages of the ‘Aarogyam Business Loan’:

Under this new program, the entire healthcare ecosystem such as hospitals, nursing homes, diagnostic centers, pathology laboratories, manufacturers, suppliers, importers and logistics companies involved in critical health care can receive loans up to Rs. 100 crore, repayable in 10 years, said SBI.

“The Aarogyam loan can be used either as a fixed-term loan to support expansion / modernization or as a working capital facility such as cash advance, bank guarantee / letter of credit. In metro centers, loans can be made under Aarogyam up to Rs 100 crore, Tier I. availed and urban centers up ₹20 crore and in centers from level II to VI up to ₹10 crore, “it said.

In addition, the beneficiary can take the loan of up to ₹2 crore is not obliged to offer collateral or collateral to the bank as these fall under the guarantee system of the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).

Dinesh Khara, Chairman of SBI, said on launching the product, “Our healthcare system has provided uninterrupted and phenomenal support to the country over the past year amid the pandemic. In recognition of your contribution in the course of Covid-19, we are pleased to issue the Aarogyam Healthcare Business Loan for you. We believe this particular loan product will provide the much-needed financial assistance to enable the expansion / modernization of existing facilities as well as the creation of new facilities. With the Aarogyam Healthcare Business Loan, it is our aim to strengthen the health infrastructure throughout the country. “

Aarogyam Healthcare Business Loan is approved under the COVID loan book announced by banks as part of the COVID relief efforts.

Previously, the lender had introduced a unique loan offer without collateral – the “Kavach Personal Loan”. The loan covers the cost of COVID treatment for self and family members of the customer.

Under this scheme, customers can borrow up to ₹5 lakh at an effective rate of 8.5% per year for 60 months including a three month moratorium. The product is offered in the category of security-free personal loans and is available in this segment at the lowest interest rate. As part of the program, costs already incurred for COVID-related medical expenses will also be reimbursed.

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source https://dailyhealthynews.ca/sbi-launches-new-business-loan-scheme-for-healthcare-sector-details-here/