COVID-19 or Coronavirus has shaken up the socio-economic structure in a globalized manner, making innumerable people feel economically helpless and needy. Having noticed the financial crisis prevailing in India during the global pandemic, several Indian banks came up with their COVID-19 loan schemes to help people combat their economic ordeals.
List of Banks offering COVID-19 personal loan schemes
- Bank of Maharashtra
- Punjab National Bank (PNB)
- Indian Bank
- Bank of Baroda (BoB)
- Union Bank of India
- UCO Bank
- State Bank of India (SBI)
- Bank of India
- Indian Overseas Bank(IOB)
Bank of Maharashtra COVID-19 Emergency Personal Loan
Loan Quantum
- For salaried individuals: 10 times the latest gross salary (maximum loan quantum is INR 3 lakhs).
- For non-salaried individuals(self-employed): 60% of the latest annual earning based on ITR (maximum loan quantum is INR 3 lakhs).
Validity
This loan scheme has been discontinued since 30th June 2020.
Interest Rate
Concessional ROI(rate of Interest) RLLR + 1%
Repayment Tenure
3 years(36 months), including 6 months of the moratorium period.
Processing Fees
Not applicable
Security
You need to supply the negative lien on the mortgaged property in the home loan to the bank.
Guarantee
Either your co-applicants or guarantors of the existing Bank Of Maharashtra Loans need to provide a guarantee to the bank for seeking this personal loan.
Punjab National Bank(PNB) Sahyog- Personal Loan Scheme for public
Loan Quantum
- For salaried individuals: 6 times the average of the last 6 months salary credited in the account. A maximum of INR 3 Lakhs can be lent as the loan quantum. For a salaried individual, the salary needs to be verified from your account statement.
Validity
This personal loan scheme will be valid till 31.03.2022.
Interest Rate
RLLR(repo linked lending rate) + 1.70%
Repayment Tenure
60 months or the remaining period of service (the lower one time period will be considered). This applies to the doctors too.
Processing Fees
Not applicable
Security/Guarantee
The bank accepts third-party guarantees. For more details, check out the extant guidelines of the Personal Loan Scheme for Salary persons – PNB Sahayog Rin.
Indian Bank IND Covid Emergency Credit Line Loan Scheme
Loan Quantum
- For salaried individuals: 20 times the latest monthly gross salary(maximum loan quantum is INR 2 lakhs).
- For regular pension holders: Maximum amount of 15 times monthly pension(net of TDS) with the maximum loan quantum of INR 2 lakhs.
Validity
This loan scheme has been discontinued since 30th June 2020.
Interest Rate
Concessional ROI(rate of Interest) at RLLR + 1%
Repayment Tenure
- IND CESL(IND COVID–EMERGENCY SALARY LOAN): 3 years(36 months), including 6 months of the holiday period. This loan amount must be liquidated mandatorily 3 months prior to the superannuation.
- IND CEPL(IND COVID–EMERGENCY PENSION LOAN): 3 years(36 months), including 3 months of the holiday period.
Processing Fees
Not applicable.
Security
NIL
Guarantee
Either your spouse or employee from the same organization.
Union Bank Of India(UBI)-Covid Emergency Line Of Credit (CELC) Scheme
Loan Quantum
The maximum viable amount is up to INR 50 crores.
Interest Rate
8% fixed per annum.
Repayment Tenure
2 years (24 months) including 6 months of moratorium period, from the day of disbursement of the loan.
Processing Fees
Not applicable.
Security
- Hypothecation of stocks and receivables.
- Extension of charge on the Primary / Collateral security.
Guarantee
Extension of existing Personal/ Corporate guarantee of promoters/ concern/ group concerns/ guarantors, as applicable.
United Commercial Bank Ltd (UCO Bank) Guaranteed Emergency Credit Line(GECL) Loan Scheme
Loan Quantum
Maximum INR 10 Crores or nearly 20% of your total outstanding loans up to INR 50 crores as of 29.02.2020 from banking systems with applied conditions.
Interest Rate
7.50% per annum
Repayment Tenure
4 years(48 months), including 12 months of the moratorium period.
Processing Fees
Not applicable.
Security
- The Working Capital Term Loan (WCTL) which is supplied in this loan scheme, will rank the second charge with the prevailing credit facilities in cash flows and security.
- Collateral Security isn’t required.
Bank of Baroda (BOB) COVID-19 Personal Loan
Loan Quantum
- Minimum Loan Amount: INR 25,000.
- Maximum Loan Amount: INR.5.00 lakhs.
Validity
This loan scheme has been discontinued since 30th June 2020.
Interest Rate
BRLLR (Baroda Repo Linked Lending Rate) + SP + 2.75% per annum with monthly rest.
Repayment Tenure
5 years (60 months), including 3 months of the moratorium period.
Processing Fees
INR 5.00 + GST
Guarantee
Guarantors from the existing linked retail loans.
State bank Of India(SBI) Guaranteed Emergency Credit Line (GECL) Product
Loan Quantum
The maximum amount of INR 5 crores (till 20 percent of the outstanding funds since 29.02.2020).
Validity
This loan scheme has been discontinued since 31st October 2020.
Interest Rate
Up to 9.25% per annum.
Repayment Tenure
Maximum up to 4 years(48 months), including 12 months of the moratorium period.
Processing Fees
Not applicable.
Bank of India(BOI) COVID-19 Emergency Personal Loan
Loan Quantum
- For salaried individuals: 3 times the latest gross salary(maximum loan quantum is INR 5 lakhs).
Repayment Tenure
3 years(36 months), including 6 months of the moratorium period.
Processing Fees
Not applicable
Indian Overseas Bank(IOB) COVID-19 Emergency Personal Loan
Loan Quantum
- For salaried individuals: 10 times the latest gross salary. The maximum loan quantum is INR 5 lakhs.
Validity
This loan scheme has been discontinued since 30th June 2020.
Interest Rate
1 year MCLR(Marginal Cost of Funds based Lending Rate) + 1.50% [ 0.20% (strategic premium) + 1.30% (Risk Premium)].
Repayment Tenure
If your age is over 70 years, the repayment tenure is 3 years. Otherwise, it is 5 years.
It includes a moratorium period of 3 months.
Processing Fees
Not applicable.
Security/Guarantee
- Pensioners aged below 70: Your spouse/legal heir / any third party who the bank norms will accept (need to fill Form 111 and F 378).
- Pensioners above 70 years old: Spouses or legal heirs need to provide the guarantee. In case they are not available, a third-party guaHi rantee is compulsory.
Other financial institutions providing personal loans for a COVID-19 emergency in India
Besides these banks mentioned above, many Non-banking financial companies(NBFCs) provide personal loans for a COVID-19 emergency. They can act as an alternative source for funding and cash flow.
Money View is also trying to solve the credit gap between the financing banks and the generalized public through highly advanced technology-supported solution modules. It provides personal loans at affordable interest rates, helping the public to cope up with their monetary difficulties.
Since Money View offers personal loans which can cater to any financial emergencies, including COVID-19 emergencies, you can avail of this personal loan any time of the year as it does not have a strict validity period. Also, the loan disbursement is a fast and hassle-free process that does not require you to be physically present or submit extensive documentation.
Benefits of these COVID-19 Loan Schemes
- These COVID-19 personal loans are targeted to provide monetary assistance to those unfortunate ones whose economic conditions worsened during the pandemic.
- The rates of interest of these loan schemes are pretty low, ranging from 8% – 15% per annum. This makes repayment easier and quicker.
- The processing and documentation charges of these loans are mostly nil or much insignificantly low.
- Prepayment fees associated with these loans are mostly nil.
- The eligibility criteria are also set very leniently in most cases. Primarily, you need to have an account in a particular bank for more than 1 month. Sometimes, regular salaries are also checked.
- These facilities are also available for the existing home loan customers having high credit scores.
Drawbacks of these COVID-19 Loan Schemes
- Most of these personal loan schemes have a moratorium period of 3 months, which was later extended to 6 months, relaxing the anxious borrowers.
However, you need to realize that this moratorium period is just a relaxation of time and not a waiver. So, the interest will continue to accrue in the outstanding amount, making monthly expenses much higher. - The extension of the moratorium period will have a negative impact on the NBFCs and others.
Related Articles: Apply for Covid 19 Personal Loan Up to 5 Lakhs
Conclusion
These personal loans have lower interests and nearly no prepayment, processing, and documentation fees. If your financial stature is seriously crucial, then you can opt for these loans.
However, if you already have other ongoing loans, do rethink. Unless you are certain about steady earnings in the upcoming days, don’t take a new loan. Instead, try to utilize your existing savings.
