PNB has opened emergency credit line for MSMEs to enhance liquidity
Punjab National Bank has opened an emergency credit line for the MSME sector to help it tide over liquidity issues amid the coronavirus crisis.
It has also liberalised the working capital assessment (LWCA) model for MSME borrowers having limits of Rs 5 crore and above, the state-owned lender said at a webinar hosted with industry body PHD Chamber to address the issues of micro, small and medium enterprises.
There is a facility of standby line of credit for MSMEs as well as PNB COVID-19 Emergency Credit Facility (PNB-CECF).
There are also other policy initiatives like restructuring of MSME advances, interest subvention scheme, TReDS, Mudra loan products, Credit Guarantee Trust for MSMEs and PSB loans in 59 minutes.
Through the online platform of Trade Receivables Discounting System (TReDS), MSMEs can avail timely credits against their bills, which helps in managing their cashflows efficiently.