In the midst of the Corona epidemic, many government-owned banks had announced that they would provide collateral free personal loans up to Rs 5 lakh. It was introduced to help people with medical expenses for treatment related to COVID-19. It was also part of the Covid-19 relief measures announced by the Reserve Bank of India (RBI) in early May. 25 thousand to 5 lakh rupees are being offered under this loan scheme. The repayment tenure of the loan is five years and banks will not charge any processing fee for the same.
Loan Moratorium of three to six months Different banks also have loan moratoriums of three to six months. The loan comes at a concessional rate that starts from 6.85 per cent for salaried, non-salaried individuals and even pensioners. This loan is collateral free i.e. the loan will be given without any witness or security. It can be used for self or family members.
Who will get this loan
There are also some conditions to take advantage of this loan. The bank will require proof of your Kovid-19 status to state that your test has been positive. You will also have to give an undertaking to use the money that it is actually for COVID-19 treatment. Those customers of the bank can take advantage of those who have received salaries for the last 12 months. Those taking a retail loan from the bank can also be eligible for this loan. Non-salaried individuals have to maintain a savings or current account with the bank along with regularly filing income tax returns.
State Bank of India
Under the loan scheme ofState Bank, a loan of 25 thousand to 5 lakh will be available. Interest will be charged on the loan at the rate of 8.5 percent. The repayment period of the loan is 5 years.
Punjab National Bank
Punjab National Bank offers loans for the treatment of COVID-19 under the brand banner of ‘PNB Sahyog RIN COVID’. This loan is offered only to the salaried individuals with the bank who are getting salary for the last 12 months. Interest will be charged on the loan at the rate of 8.5 percent. Loan will be available up to six times the average salary of maximum six months. However, it will not exceed Rs 3 lakh.
Bank of Baroda
People who have taken a loan from the bank before are eligible to apply for this loan. Customers who have a relationship with the bank for at least six months or have been paying regular installments for the last 3 months are also eligible.
Bank of India
Bank of India also offers loans only to existing customers of the bank and those who have an existing personal or housing loan with the bank. Interest will be charged on the loan at the rate of 6.85 percent. The repayment tenure of the loan is 3 years with the loan moratorium of six months.
Is offering loans to the bank customers with an interest rate of 8.5 per cent for a maximum tenure of five years.