Banks decide to grant unsecured personal loans for Covid treatment
Public sector banks (PSBs) have decided to make unsecured personal loans available to individuals to cover expenses related to Covid treatment. In addition, they will also provide loans to improve health care infrastructure.
This with the aim of creating a Covid loan portfolio in line with the Reserve Bank of India’s May 5 announcement that it will provide a ₹ 50,000 crore term liquidity facility to banks to facilitate access to banking services. emergency health.
Individuals (employees, self-employed and retirees) will be offered unsecured personal loans for the Covid treatment of themselves and their family members.
The minimum and maximum loan amount, which will be at a concessional rate and for a maximum period of five years, will be ₹ 25,000 and 5 lakh, respectively.
State Bank of India chairman Dinesh Khara said his bank will charge 8.50 percent interest on these loans.
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Banks to extend loans to healthcare companies to hospitals and nursing homes to set up oxygen factories with power supply of 2 crore per entity at 7.50% interest for up to five years .
The loans will fall under the government’s Emergency Credit Line Guarantee Scheme (ECLGS) 4.0.
Business loans for healthcare facilities
Banks will provide business loans for health facilities. The target group for these loans will be the ecosystem engaged in the construction / maintenance of health care infrastructure; hospitals, nursing homes, clinics, diagnostic centers and pathology laboratories.
The business loans, which will be at a concessional rate and for a maximum term of 10 years, aim to set up / develop health infrastructure and manufacture health products.
The amount of loans to be offered will reach up to ₹ 100 crore in metropolitan centers; up to ₹ 20 crore in Level I centers and urban centers; and up to ₹ 10 crore at Tier-II to Tier-VI centers.
Rajkiran Rai G, president of the Association of Indian Banks, pointed out that Covid’s loan portfolio will be given priority sector classification.
To encourage banks to provide new lending support to a wide range of entities under emergency health services, RBI said they would be eligible to park their excess liquidity up to portfolio size. of Covid loans under the reverse repurchase window at one rate. which is 40 basis points higher than the reverse repo rate.