COVID-19 Mahabank Kisan Rahat Yojana (for Agro based industries / units)


To meet emergent liquidity mismatch arising out of COVID-19

Nature of Facility

Fund Based: Working Capital /Short Term Loan


All standard accounts classified under Agri. Infrastructure / Agro Ancillary Activities (excluding account classified as SMA 2 as on 23.03.2020) and till the date of sanction are eligible. For example :-

  1. Food & Agro Processing Industries
  2. Cold Storages
  3. Rural Godowns / Warehouses
  4. Industries under Milk & Milk Products
  5. Poultry & Fishery Industries
  6. Agri Clinics & Agri Business Centers
  7. Dealers in Fertilizers, Pesticides, Seeds, Farm machineries etc.

Quantum of Finance

  • Maximum up to 10% of the existing fund based working capital credit facilities Maximum up to Rs.10 crores.
  • Existing customers who have repaid the EOD /STL on due date.
  • The above facility will be in addition to the Assessed Bank Finance.
  • 10% of sanctioned under Line of Credit COVID-19 may be sanctioned on clean basis for payment of operating expenses on case to case basis.


Maximum up to 12 months (excluding moratorium period of 6 months)


Maximum period up to 6 months from the date of first disbursement.
Disbursal & Repayment
  • The borrower can avail the sanctioned amount in one go or in tranches.
  • The entire loan under the scheme has to repay within maximum period of 12 months excluding moratorium (i.e. either in 12 Monthly Installments / 4 Quarterly Installments / 2 Half Yearly Installments).
  • In case the limits are availed in tranches then the repayment /liquidation of the tranches should be 12 months from the date of first disbursal (excluding moratorium) or validity of sanctioned limit whichever is earlier
  • Borrower may make early repayment. In case of early liquidation / repayment of the loan/ tranche borrower may be allowed to apply again to drawdown in one go or in tranches. However, the subsequent drawls should also be liquidated as above
  • The facility will be considered as an exposure on the borrower and guidelines stipulated under the RBI Prudential Norms shall be adhered to.
  • The facility shall be made available as Fund Based Limit only.
  • Interest to be served as and when applied (including during moratorium period also).
Validity of the schemeScheme will be in force up to 30.06.2020
In case of need, additional cover period of 3 months to be allowed in respect of receivables over & above presently allowed period till the closure of the facility.
Rate of Interest

As per CRR and Collateral Security Coverage, applicable as per existing norms.

SecurityHypothecation of entire current assets of the borrower present and future. Extension of charge on the Primary Security / Collateral security. (charge to be noted in ROC , wherever applicable)
Perfection of security shall be completed maximum within one month from the date of first disbursement.
GuaranteeExisting guarantors if any, to be continued
Insurance Comprehensive insurance of all the securities charged to the Bank should be taken with Bank clause
Processing FeeTo be waived off
Documentation chargesTo be waived off
Prepayment ChargesNil
  • The limit will be over and above the Existing sanctioned limit.
  • The Facilities will be made available at the specific request of the borrower, stating that the business has been adversely affected by COVID-19.
  • 10% of eligible limit may be sanctioned on clean basis for payment of operating expenses on case to case basis, even if the drawing power is insufficient to that extent.
  • IRAC norms as stipulated to WC / Demand Loan shall be applicable.
  • End use to be verified as per extent guidelines of the bank.
  • This facility is not given to restructured accounts
  • In case of Consortium / MBA accounts, additional facility requested by the borrower should be discussed and minutes in the Consortium, whereas in case of the account under Multiple Banking Arrangement, it shall be considered on Individual Assessment.
  • Other guidelines of the bank to be followed.