Due to lockdown where many people have lost their jobs, the salaries of many have been cut. The income of all small businessmen has also suffered huge losses. Many people have faced a liquidity crunch. Now, after the lockdown is relaxed, people are going for a personal loan to bring their business back on track and meet their needs. Today, we will get a different kind of personal loan, which has been brought in by keeping in view the present situation. Its name is COVID-19 personal loan.
Several banks in the country have launched the COVID-19 personal loan. These banks also include Bank of Baroda, Punjab National Bank, Indian Bank, Union Bank of India, Maharashtra Bank and Bank of India. The COVID-19 personal loan has a number of features, including zero processing fees and low-interest rates. If your bank is offering a COVID-19 personal loan, you can go for it. Let's know how special the COVID-19 loan is as compared to the normal personal loan.
Rate of interest:
Banks charge interest ranging from 8.75% to 26% on personal loans. This interest rate depends on the credit profile of the borrower. The COVID-19 personal loan banks are giving to their existing customers. So, the interest rate is low. The interest rate on COVID personal loans varies from 7.20% to 10.25%.
Processing Fees:
In personal loans, banks charge processing fees up to 4% of the loan amount, which is much higher for the customer. On the other hand, the processing fee in the COVID-19 personal loan can be from zero to 500 rupees. The COVID personal loan is for existing customers, so it also has a lower processing fee.
Loan Amount:
In personal loans, banks give loans ranging from Rs 50,000 to Rs 20 lakh. NBFCs and some banks also give loans up to Rs. 40 lakh. In the COVID-19 personal loan, the loan amount varies from Rs 25,000 to Rs 5 lakh. This loan is to overcome the temporary financial crisis, so the loan amount has been kept low.
Eligibility:
A number of things are seen with the customer's job profile, company, income, credit score for personal loans. While in the COVID personal loan, banks see the customer's credit profile and track record of debt payments.
Period:
Personal loans usually have to be repaid in 1 to 5 years. Some banks also give their customers up to seven years to repay the loan. In the COVID-19 personal loan, the payment period is low. This loan is to overcome the temporary liquidity crunch, so both the loan amount and the repayment period are low. The repayment period of this loan is three years in most places.
Last Date of Application:
If you want to apply for a COVID-19 personal loan, you will have to apply for it before the last date of the scheme of banks. Several banks, including Punjab National Bank and Bank of Maharashtra, can apply for the loan only up to 30th June 2020 under the scheme.
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