Union Bank comes to rescue of rain victims with 5,000 cr loans

Vijayawada: The Union Bank of Indian has come to rescue the people suffered losses and pain during the recent torrential rains and Covid pandemic in the State.

UBI's Chief General Manager (CGM) V Brahmananda Reddy said here on Tuesday that the bank has prepared an action plan to extend loan of Rs 5,000 crore to the flood victims including farmers, small traders affected by Covid-19 and other sections of people and the medium, small and micro enterprises (MSMEs).

Addressing the media at the field general manger office here, the CGM said that the Union Bank will disburse the loan of Rs 1,000 crore under Kisan Tatkal scheme. It will provide loans of Rs 1,500 crore to the self-help groups and extend loans of Rs, 2,000 crore to the MSMEs as an additional instant plan to recover from the economic slowdown.

The CGM said that the Bank has identified 15,800 eligible persons, who had already taken housing loan and regularly paying the installments, for an additional loan of Rs 15 lakh without any additional collateral. According to him, the farmers, women, MSMEs and other sections of people, that suffered heavy loss in the heavy rain and floods in the districts of Kadapa, Anantapuram, Chittoor and Nellore, badly needed financial help to recover from the economic disaster.

"This action plan would surely help them to recover from the distress," he said.

Under Kisan Tatkal scheme, the farmers would be given an instant loan of Rs 50,000 without additional collateral. Likewise, the self-help DWCRA groups would get maximum loans of Rs 20 lakh and in urban SHGs would get Rs 10 lakh.

The MSMEs that suffered heavy loss during the pandemic would get instant loans under Covid Emergency Credit Scheme.

The CGM hoped that these schemes would help these sections to recover from the catastrophe.

Referring to the new MSMEs, the CGM said that they could obtain loans under Festival Bonanza scheme at the lowest rate of interest.

Efforts are on to identify the young people between the age of 18 and 21 to facilitate the opening of saving accounts in Union Bank branches. The field staff would collect the names of the young people through the voter lists.

Deputy Zonal Head and deputy general manager K Srinviasulu Reddy, Vijayawada regional head and deputy general manager Vege Ramesh, Machilipatnam regional head and deputy general manager N Srinivasa Rao and other officers also spoke.