Ready for Covid-19 treatment | COVID-19 treatment: Government banks offer personal loans with relaxed repayment standards. Should we choose?
COVID-19 treatment: Government banks offer personal loans with relaxed repayment standards. Should you choose?
- Due to the coronavirus pandemic and liquidity shortage, public sector banks launched COVID-19 personal loans last year
- India’s largest lender, State Bank of India (SBI) offers loans at 8.5% interest rate
- Individuals can use these loans for COVID-19 treatment of themselves or their family members
New Delhi: Public sector banks are offering unsecured personal loans up to Rs 5 lakh that individuals can use for COVID-19 treatment on themselves or their family members.
For example, the State Bank of India (SBI) KAVACH personal loan program is intended to treat COVID-19 infection for oneself or for the family as of April 1, 2021. It also processes repayment of expenses already incurred for COVID-19 treatment. . It is available to the bank’s customers – employees, non-employees and retirees – without processing fees or guarantees. There is also no entry fee. The minimum loan amount is Rs 25,000 and the maximum amount is Rs 5 lakh.
Likewise, Punjab National Bank’s Sahyog RIN COVID PNB is a personal loan specifically for the COVID treatment of oneself or infected family members as of April 1, 2021. It is available to all government employees or of the private sector having their salary account with the bank and drawing a regular income during the last 12 months. The loan amount will be six times the average salary of the last six months credited to the account and capped at Rs 3 lakh. The salary will be verified from the bank statement.
Bank of India offers COVID-19 personal loan only to clients receiving salary through the bank, all existing clients of personal loans and home loans. The maximum loan amount is capped at Rs 5 lakh and the maximum duration of the program is three years, including a six-month moratorium from which borrowers can benefit. During the moratorium period, borrowers are not required to make any loan payments to the bank.
Bank of Baroda has its own version of COVID personal loans for existing home loans, property loans (LAPs), and auto loan customers. The customer must have stayed with the bank for at least six months and have already paid a minimum of three months in installments. The COVID personal loan amount can be 10% of the sanctioned limit of an existing and current home loan or an LAP and 20% of the sanctioned limit of the car loan that the customer has taken out. The maximum loan amount is capped at Rs 5 lakh.
Union Bank of India extends the loan to existing customers. The maximum loan amount is capped at Rs 5 lakh. The duration of the regime can be up to five years, including a six-month moratorium period.
Due to the coronavirus pandemic and the liquidity shortage, public sector banks launched COVID-19 personal loans last year.
Should we opt for it?
If you are facing a temporary cash flow problem, only go for a personal loan for COVID-19 treatment, which is available at cheaper rates. You can avoid them if you are uncertain about the cash flow. It is best to avoid responsibilities in today’s environment. Instead of taking on a new liability, it is better to liquidate an asset.