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Canara Bank announces 3 loan schemes amid fight against COVID-19

The Canara Chikitsa healthcare credit facility will offer loans from over Rs 10 lakh to Rs 50 crore to registered hospitals, nursing homes, medical practitioners, diagnostic centres, pathology labs and all other units engaged in the servicing healthcare infrastructure.

May 28, 2021 / 12:33 PM IST

"The board meeting of the bank is scheduled to be held on May 28, 2021 at the head office, Bengaluru, to consider and approve the capital raising plan of the bank for FY 2021-22," Canara Bank said in a regulatory filing.

 
 
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State-run Canara Bank on Friday announced three loan schemes as part of the fight against the pandemic under which it will offer healthcare credit, business and personal loan to individuals.

The Canara Chikitsa healthcare credit facility will offer loans from over Rs 10 lakh to Rs 50 crore to registered hospitals, nursing homes, medical practitioners, diagnostic centres, pathology labs and all other units engaged in the servicing healthcare infrastructure.

The loan to be offered at a concessional rate of interest will have tenor of 10 years with moratorium up to 18 months, Canara Bank said in an advertisement.

The Canara Jeevanrekha healthcare business loan will offer loan up to Rs 2 crore at a concessional interest rate for manufacture and supply of healthcare products such as medical oxygen and oxygen cylinders and oxygen concentrators to registered hospitals and nursing homes or other manufacturers and suppliers.

Canara Bank said there will be no processing fee for this loan. For micro, small and medium enterprises (MSMEs), there will be no collateral security, which the lender will cover under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), and the bank will bear the guarantee premium.

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COVID-19 Vaccine

Frequently Asked Questions

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How does a vaccine work?

A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.

How many types of vaccines are there?

There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.

What does it take to develop a vaccine of this kind?

Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.

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CGTMSE is meant to provide financial assistance to such kinds of industries without any third party guarantee or collateral.

For non-MSMEs, the collateral security will be minimum 25 per cent.

Canara Chikitsa and Canara Jeevanrekha loan schemes will be valid till March 31, 2022.

Under the third category of loan -- Canara Suraksha personal loan scheme -- the lender will offer loan from Rs 25,000 - Rs 5 lakh as immediate financial assistance to customers for COVID-19 treatment during admission or post discharge.

The scheme will offer moratorium of six months. Coming at a nil processing fee, the scheme will be valid till September 30, 2021.

Earlier this month, the Reserve Bank of India (RBI) announced a Rs 50,000-crore special window to banks to lend to vaccine makers, hospitals and COVID-related health infrastructure.

It also allowed individual and small borrowers more time to repay their debt, aimed at providing financial support when the economy is hit by the repercussions of the pandemic.

According to ratings firm Crisil, banks are expected to lend for healthcare activities below the current rates of lending, courtesy the scheme, which entails loans being available to banks at repo rate till March 2022 which are to be utilised for onlending and also earn a priority sector lending classification.
PTI
first published: May 28, 2021 12:34 pm

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