UBI to help flood victims with loans of ₹5,000 crore

Union Bank of India (UBI) has prepared an action plan of extending loans worth ₹5,000 crore for flood victims including farmers, small traders affected by COVID-19 and medium, small and micro enterprises (MSMEs).

Addressing a press conference here on Tuesday, UBI Chief General Manager (CGM) V. Brahmananda Reddy said that the action plan was prepared to meet the requirements and needs of cross sections of the society that suffered losses due to the COVID-19 pandemic and floods. Under the action plan, loans worth ₹1,000 crore would be disbursed under the Kisan Tatkal scheme. Farmers can avail 50% of crop loan or upto ₹50,000 loan instantly without any collateral security or guarantee. The bank would also give loans worth ₹1,500 crore to self-help groups (SHGs), and ₹2,000 crore to MSMEs would be provided as an additional instant plan to recover from the pandemic impact.The self-help DWCRA groups would get maximum loans of ₹20 lakh and SHGs in urban areas would get ₹10 lakh, he said.

The CGM said that the bank had identified 15,800 eligible persons, who had already taken housing loans and were regularly paying the installments, for an additional loan of ₹15 lakh without any additional collateral. “Farmers, women, MSMEs and other sections of people that suffered losses in the heavy rain and floods in Kadapa, Anantapur, Chittoor and Nellore districts, badly needed financial help to recover from the economic disaster, he said. The MSMEs that suffered heavy loss during the pandemic would get instant loans under the COVID Emergency Credit scheme. This action plan would surely help them recover from distress,” he said.

Union Bank of India Deputy General Managers K. Srinivasulu Reddy, Vege Ramesh and N. Srinivas Rao were present.

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