The country’s largest lender, the State Bank of India (SBI), on Thursday launched a new “Aarogyam Loan” business loan program for the health sector to expand lending support for the pandemic of new coronavirus.
The new loans can be used in the form of cash credit, term loan, bank guarantee, letter of credit, the lender said in a statement.
Benefits of the “Aarogyam Business Loan”:
Under this new program, the entire healthcare ecosystem, such as hospitals, nursing homes, diagnostic centers, pathology labs, manufacturers, suppliers, importers, Logistics companies engaged in critical health care procurement are eligible for loans of up to Rs. 100 crore, repayable over 10 years, the SBI said.
âThe Aarogyam loan can be used either as a term loan to support expansion / modernization, or as working capital facilities such as cash credit, bank guarantee / letter of credit. And urban centers. up to ??20 crore and in level II to VI centers up to ??10 crore, “he added.
In addition, the beneficiary who avails himself of the loan up to ??2 crore will not be required to offer a guarantee or guarantee to the bank as this will be covered by the Guarantee Scheme of the Trust Credit Guarantee Fund for Micro and Small Enterprises (CGTMSE).
During the product launch, Dinesh Khara, President of SBI, said, âOur healthcare system has provided uninterrupted and phenomenal support to the country over the past year amid the pandemic. Acknowledging and recognizing their contribution in the aftermath of Covid-19, we are pleased to launch the Aarogyam Healthcare Business Loan for them. We believe that this special loan product will provide the necessary financial support to enable the expansion / modernization of existing facilities as well as the creation of new facilities. With Aarogyam Healthcare Business Loan, our goal is to strengthen healthcare infrastructure across the country. “
The Aarogyam Healthcare business loan will be eligible under the COVID loan portfolio created by banks announced by RBI as part of COVID relief measures.
Previously, the lender had launched a unique unsecured loan offer – “the Kavach personal loan”. The loan covers the COVID treatment expenses of the client’s self and family members.
Under this program, clients can benefit from loans up to ??5 lakh at an effective interest rate of 8.5% per annum for 60 months, which includes a three-month moratorium. The product is offered in the category of unsecured personal loans and is offered at the cheapest interest rate in this segment. Reimbursement of expenses already incurred for medical expenses related to COVID will also be provided under the program.
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