Air India Secures Rs 14,000 Crore Loan From SBI & BOB
Air India, the national flag carrier of India, has secured a loan of Rs 14,000 crore from the State Bank of India (SBI) and Bank of Baroda (BOB) to meet its operational requirements. The airline has been struggling with a huge debt burden and has been looking for ways to improve its financial situation. The loan has been granted under the Emergency Credit Line Guarantee Scheme (ECLGS) of the Indian government, which was launched in May 2020 to provide financial assistance to businesses impacted by the COVID-19 pandemic. The scheme provides 100% guarantee coverage to banks on loans given to eligible borrowers, and the loans are collateral-free. Air India had earlier sought a loan of Rs 2,400 crore from the government to meet its immediate working capital requirements. However, the government refused to provide the loan and instead asked the airline to approach banks for the same. With the approval of the loan from SBI and BOB, Air India has now been able to secure the much-needed...