Canara Bank has launched a new scheme for small-scale industries (SSIs) banking with it.
The bank will sanction a stand-by credit of up to Rs 5 lakh to SSIs at the time of a regular sanction of working capital.
However, the bank did not detail the rate of interest it would charge on such loans.
The stand-by credit limit sanctioned would be in the form of a term loan with a repayment period up to six years and the businesses can avail themselves of the limit within one year of its sanctioning.
The scheme is a revolving facility which gets renewed every year and the facilities under the scheme could be taken up on multiple occasions with a minimum disbursement of Rs 25,000.
Source: Financial Times
