COVID-19 Personal Loan – Public Sector Banks (PSB) have started offering the personal loan to COVID effected customers. Some of the banks offering covid-19 personal loans include SBI, Canara Bank, Bank of Baroda (BoB), Punjab National Bank (PNB), Bank of Maharashtra (BoM),  Bank of India (BoI) and others. Banks are offering Covid-19 personal loans only to existing borrowers and pension and salary account holders

Check out the Eligibility Criteria for COVID-19 Personal Loan

Loan eligibility

The COVID Personal loan eligibility depends on many criteria like borrower’s job profile, monthly income, type of employer i.e. Government or private, credit score, etc. Most banks are offering the loan to existing customers only and those borrowers who are maintaining salary accounts or pension accounts with the bank. Moreover, applicants need to have a good track record of loan repayments prior to the lockdown.

Loan amount

Personal Loan amounts offered by banks are generally lower side and usually range from Rs 5000 to Rs 5 lakhs, as Covid-19 personal loans have been designed to meet the temporary liquidity mismatch due to the lockdown. For e.g. Canara Bank is offering COVID-19 loan with maximum limit to Rs 50,000

Know More – Canara Bank Cheaper Personal Loan for Professional & Salaried

Interest rate & processing fee

The most interesting part is the rate of interest offered on these loan, it is lower than 10% in majority of the banks. interest rate for regular personal loans is 9-24% per annum  with processing fee can go up to 3% of the loan amount. As lenders are offering Covid-19 personal loans to their existing customers, they are charging lower interest rates, starting at 7.2% p.a., going up to 10.5% p.a. Most lenders are also not charging any processing fee for Covid-19 loans.

Loan tenure

The COVID Personal loan tenure is between one and five years, with some banks offering a maximum tenure of seven years. Most banks are offering moratorium of up to 3-6 months in Covid-19 specific personal loans. Borrowers are required to just service the interest component during the moratorium period. 

Options for others customers

Other customer may also apply for the personal loan with the bank but not under COVID. The scope of Covid-19 specific personal loans is limited to the existing borrowers and select set of depositors of the banks offering these loans. Many banks have also started offering instant digital personal loans to a select group of their existing customers.

Personal Loan to Credit Card holders

Credit cardholders with proven track record may consider pre-approved loans against credit cards to meet their financial shortfalls. Credit Card offering Banks are disbursing the loan which usually varies between Rs 50,000 to 5 Lakhs, within the same day of making an application, their interest rates are a bit higher than the regular personal loans.

Existing Housing Loan Borrowers

Existing home loan borrowers usually have the option of availing top-up home loans from the Public Sector Banks. These banks are offering COVID housing loan top up loan up to maximum of 10% of the home loan outstanding. Moratorium is also provided on these loan between 3-6 Months.

Bank of baroda advertise on their official twitter about the COVID-19 Loans – check here

Next Article : Should you go for COVID -19 Loans ?