A COVID Loan to meet your Short-Term Financial Needs.

COVID-19 loans for women Self-Help Groups (SHGs).

Indian Overseas Bank COVID-19 Loans

As of May 2020, Indian Overseas Bank is offering one loan scheme to help its existing SHG customers deal with the financial aftermath of COVID-19. It is: Indian Overseas Bank IOB-COVID 19 Support Scheme for SHGs (for Women Self-Help Groups)

We give you important details of this COVID-19 loans below. If you need more details about a particular COVID-19 loan scheme, please get in touch with us at [email protected].

Indian Overseas Bank IOB-COVID 19 Support Scheme for SHGs (for Women Self-Help Groups)

This loan helps existing women Self-Help Group borrowers to get funds from Indian Overseas Bank to face the financial crisis arising out of COVID-19. This short-term loan scheme is only in force up to 30th September 2020.

Features of SHG COVID Sahaya Loan

  • Quantum of Loan: This is a need-based loan and the maximum loan amount is capped at Rs. 5000 per borrower and Rs. 1 lakh for the whole group under the Indian Overseas Bank IOB-COVID 19 Support Scheme for SHGs
  • Interest Rate: The interest rate applicable on this loan is defined as the sum of one year Marginal Cost of Funds based Lending Rate (MCLR) of Indian Overseas Bank, Strategic Premium (SP) and Risk Premium (RP). As of May 2020, these one year MCLR is 8.25%, SP is 0.20% and RP is 0.95% bringing the effective interest rate at 9.40%
  • Repayment Period: The loan must be repaid within 3 years including a moratorium period of 6 months from the date of first disbursement
  • Eligibility: Existing women SHG customers of Indian Overseas Bank with a satisfactory track record who have also availed at least two doses of credit from the bank are eligible for this loan
  • Margin & Security: Nil

Documents Needed for Individuals (Salaried and Self-employed)

  • Loan Application Form duly filled and signed by the applicant and co-applicant, if any
  • Two Passport Size Photographs of applicant and co-applicant
  • Personal ID Proof: Aadhaar Card, PAN Card, Passport or Driving License. PAN Card / PAN Card Issuing Letter is must
  • Signature Proof: PAN Card, Banker’s Verification, Driving License or Passport
  • Residential Address Proof (Any One): Aadhaar Card, Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
  • Income/Banking Proof for Salaried Professionals: Last 3 months’ salary slip, Form 16 or income tax returns
  • Income/Banking Proof for Self-employed Professionals/Insurance Agents: Computation of income of last 2 years, Balance Sheet, Profit and Loss Account, Registration Certificate, GST Return, Income Tax Challan/ Form 26AS/TDS Certificate, IT Assessment, etc.

Documents Needed for Proprietorship and Partnership Firms

  • Loan Application Form duly filled and signed
  • Partnership Deed and Partnership Registration Certificate
  • ID Proof of the Firm: Firm PAN Card or PAN Issuing Letter
  • Office Address Proof: Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
  • Income Proof: CMA Data and Project Report, Debtors and Creditors Certificate, GST Return, Last 3 years ITR of applicant and co-applicant, Audited or CA Certified Computation of Income/Trading Account/Profit and Loss Account/Balance Sheet, Annual Audit Report and Tax Audit Report if audited, Form 16A if applicable, Net Worth of applicants, co-applicants and guarantors
  • Banking Proof: Last 1-year Statement of Company’s Major Account, Current Account, Cash Credit Account, Overdraft Account, Loan Statement of Running Loans, Latest Closed Loan NOC and Last 6-months Bank Statement of Applicant and Co-applicant’s Savings Account

Documents Needed for Private Limited and Public Limited Companies

  • Application Form duly filled and signed
  • Company ID Proof: Company’s PAN Card
  • Office Address Proof: Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
  • Business Proof: AOA and MOA, Company Incorporation Certificate, Business Commencement Certificate, Board Resolution, CA/CS verified Share Holding Pattern, ROC Annual Return, DIN Certificate, List of Directors on Company Letter Head, GST Number, Form 32 in case of Director Change
  • Income Proof: CMA Data and Project Report, Last 3 Years ITR Acknowledgement copy of Company and all Directors, Last 3 Years Annual Credit Report or Tax Audit Report with Article 3CB, Article 2D, Article 3CD, TDS Certificate/Form 16A, Net Worth Certificate
  • Banking Proof: Last 1-year Statement of Company’s Major Account, Current Account, Cash Credit Account, Overdraft Account, Loan Statement of Running Loans, Latest Closed Loan NOC and Last 6-months Bank Statement of Applicant and Co-applicant’s Savings Account
  • Security (as applicable): Margin Money, Previous and Current Sales Deed, Plant and Machinery list, Plant and Machinery Current Valuation Report, Property Photographs, Previous Property Search and Valuation Report
  • Other Relevant Documents: Company’s Business Profile, Promoter/Guarantor’s Profile, Corporate Brochure, Business Experience Supporting Documents, Business References

Reference Facts

  • Indian Overseas Bank Website: www.iob.in and www.iobnet.co.in (net banking)
  • Headquarters: Chennai, Tamil Nadu
  • Call Centre Toll-Free Number: 1800 425 4445