Punjab National Bank opens emergency credit line for MSMEs, eases working capital norms

Punjab Nationwide Financial institution opens emergency credit score line for MSMEs, eases working capital norms | Firms Information

New Delhi: Punjab Nationwide Financial institution on Wednesday stated it has opened an emergency credit score line for the MSME sector to assist it tide over liquidity points amid the coronavirus disaster. It has additionally liberalised the working capital evaluation (LWCA) mannequin for MSME debtors having limits of Rs 5 crore and above, the state-owned lender stated at a webinar hosted with business physique PHD Chamber to deal with the problems of micro, small and medium enterprises.

There’s a facility of standby line of credit score for MSMEs in addition to PNB COVID-19 Emergency Credit score Facility (PNB-CECF), the financial institution stated. There are additionally different coverage initiatives like restructuring of MSME advances, curiosity subvention scheme, TReDS, Mudra mortgage merchandise, Credit score Assure Belief for MSMEs and PSB loans in 59 minutes, it added.

The financial institution’s MD and CEO SS Mallikarjuna Rao stated within the backdrop of the nationwide lockdown, the financial institution has organised the webinar to deal with the liquidity requirement of its clients by the web platform. 

This varieties part of its ‘Mega MSME Outreach’ geared toward connecting with its MSME clients throughout the nation and to deal with their challenges.

He stated the financial institution has witnessed a humongous response from debtors throughout the nation by this outreach programme. The general public sector lender stated that it has been contacting greater than 1 lakh MSME debtors by its ‘Every One Attain Ten Every Day’ initiative to replace them about its schemes each day.

By way of the web platform of Commerce Receivables Discounting System (TReDS), MSMEs can avail well timed credit towards their payments, which helps in managing their cashflows effectively, PNB stated.

As well as, the financial institution has communicated with giant variety of MSME associations throughout the nation in search of co-operation to coach the businesses beneath their ambit concerning the particular schemes launched by the financial institution. 

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