Loans on Easy Terms

Loans on Easy Terms

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Terms of the plan

These special personal loan schemes of banks are now made available for treatment related to Covid-19. When applying for a Covid-19 personal loan, the borrower must guarantee that funds are needed to cover the cost of the treatment. Banks require covid-positive reports from customers taking loans for treatment on or after April 1, 2021. The terms of the Covid-19 personal loan vary from bank to bank.

Loans on Easy Terms
Loans on Easy Terms

Special covid-related personal loan schemes introduced by some PSU banks during the second wave can be availed only by a select group of existing depositors and borrowers as per the eligibility criteria laid down by these banks.

For example, the State Bank of India's (SBI) shielded personal loan scheme is for the treatment of Kovid-19 infection for oneself or one's family on or after April 1, 2021. It also processes reimbursement for costs already incurred for COVID-19 treatment. It is available to bank customers - salaried, non-salaried and pensioners - without any processing fees or collateral. There is also no foreclosure fee. The minimum loan amount is Rs 25,000 and the maximum is Rs 5 lakh.

Similarly, Punjab National Bank's PNB collaboration RIN Kovid is a personal loan specifically for the treatment of infected self or family members on or after April 1, 2021. It is available to all government or private salaried persons who have a salary account in a bank and regular income for the last 12 months. The loan amount will be six times the average salary of the last six months deposited in the account and the limit will be Rs. 3 lakh. Salary will be verified from the bank statement.

Bank of India Covid-19 offers personal loans only to customers who are paid by the bank, who are all existing personal and housing loan customers. The maximum loan amount is Rs. 5 lakh and the maximum term of the scheme is three years, which includes a six-month moratorium which can be availed by the borrowers. During the moratorium period, borrowers are not required to repay any loan installments to the bank.

Bank of Baroda has its own version of existing home loan, property loan (LAP) and covid personal loan for auto loan customers. The customer should be stuck in the bank for at least six months and should have already paid at least three months installments. The amount of Covid Personal Loan can be up to 10% of the approved limit of existing and current home loan or LAP and 20% of the approved limit of auto loan taken by the customer. The maximum loan amount is Rs. Limited to 5 lakhs.


Union Bank of India provides loans to existing customers. The maximum loan amount is Rs. Limited to 5 lakhs. The term of the scheme can be extended up to five years, including a moratorium period of six months.

Banks are restricting these personal loans to existing payers, pensioners and loan customers as they know the credit history of the borrower before approving it.

what are you doing?

Interest rates on COVID-19 loans start at 6.85% and go up to 8.5% (refer to table). Regular personal loans come at an interest rate of 8.90-14.50% depending on your credit score and income.

"These plans are purposely offered at low interest rates to help many (existing) customers who have been affected by cash flow due to the cost of medical treatment of Covid-19.


Doesn't work?

Covid-19 personal loan schemes are limited to existing customers of these banks. Banks will mainly lend only to customers who have regular salary credit from the employer as per the eligibility terms and conditions as described above, ”says Khosla. For existing loan customers, the bank will check the track record of repayment and credit scores before disbursing any amount.

A period of three to six months has been given. But, “During the moratorium, interest is charged and added to the borrower's repayment costs.

Should you like it?

A personal loan should be your last resort when it comes to borrowing. If you are in a tight financial situation, try first and tap your Emergency Corps if you have one. If you do not, then liquidate your existing dud investments and gold holdings.


Don't choose this loan simply because it is readily available online and has a lower interest rate compared to regular personal loans.

COVID-19 loan on easy terms

The second wave of COVID-19 epidemic has affected millions of families across India. Hospital bills for treatment run into millions of rupees for families. During this period, the Reserve Bank of India (RBI) announced Kovid relief measures.

It allowed banks to launch special personal loan schemes to help people cope with any cash crunch, along with concessional repayment standards, during the Covid-19 epidemic

Should you choose a COVID-19 special personal loan plan to alleviate your short term financial pain?

Terms of the plan

These special personal loan schemes of banks have now been made available for the treatment of COVID-19. When applying for a Covid-19 personal loan, the borrower must guarantee that funds are needed to cover the cost of the treatment. Banks require covid-positive reports from customers taking loans for treatment on or after April 1, 2021. The terms of the Covid-19 personal loan vary from bank to bank.

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