The whole world is reeling under the wraths of the tiny but mighty virus known as the coronavirus. Every one of us striving to get out of it in a better way. And the government is also doing its bid to ease off the pressure. For the same purpose, the Government of India had announced a relief package when the nation was witnessing the disastrous second wave during the month of May.
Now, it seems that even banks have also taken up the agenda and are ready to be there for their fellow Indians. Various banks have announced no collateral loans up to Rs. 5 Lakhs. Banks have also been large-hearted for charging no processing fees for these loans. The loan can be repaid over a period of 5 months. A moratorium period of three to six months is also offered depending upon banks.
How to avail these loans
For availing these loans, the bank will require proof of your/your family member’s Covid-19 positive status. You will also have to provide an undertaking stating that utilization of the funds, will be done for Covid-19 treatments only.
For becoming eligible for these loans, you need to be a customer of the bank who has drawn salaries for the past 12 months. Persons who have taken a retail loan from the bank can also avail this loan. If you are a non-salaried individual, you will have to maintain a savings or current account with the bank with regularly filed income tax returns.
Further details w.r.t. each bank
1) State Bank of India (SBI)
The State Bank of India offers its customers an 8.5 percent interest rate on the loans with the minimum loan amount standing at Rs 25,000 and a maximum of Rs 5 lakh.
2) Punjab National Bank (PNB)
PNB offers a loan for Covid-19 treatments under the brand banner of ‘PNB Sahyog RIN COVID’. It only applies to the government-employed or privately-salaried individuals who belong to the bank and have been drawing a salary for the last 12 months. With an 8.5 percent interest rate, the loan amount can be at most, six times the average of the six-month salary (with an upper cap of Rs 3 lakh).
3) Bank of Baroda
For taking a loan from this bank you should have either already taken a loan from the bank/ you should have been with the bank for at least the last 6 months. Also, the people who make regular installments for the past 3 months are eligible. The bank charges a monthly interest rate that can be calculated as the ‘Baroda Repo Linked Lending Rate’ + SP+ 2.75 percent per annum with monthly rest.
4) Bank of India (BOI)
The bank at present charges a 6.85 percent interest on the loan and it has a 3-year tenure along with a six-month moratorium. The bank only offers the loan to existing customers of the bank and to those who have existing personal or housing loans with it.
5) Union Bank
The bank is offering the loan with an 8.5 percent interest rate. The tenure of this loan is a maximum of 5 years only.
6) Canara Bank This bank offers the loan under the branding of ‘Suraksha personal loan’. It performs the same function as the Covid-19 treatment loan. This specific loan comes with a moratorium of six months.