COVID 19 Personal Loan Schemes of Different Banks

Last Updated : April 7, 2020, 7:50 p.m.

The Coronavirus COVID 19 pandemic has led to a lockdown of 21 days and thus worsened the liquidity scenario of many. To ease the situation, banks have come with suitable personal loan offers with relaxed norms and conditions. These schemes have been branded as COVID 19 Personal Loan. Let’s check out the banks which have come with such attractive offers at this gloomy hour.

Bank of Baroda

Leading the charge is Bank of Baroda (BoB) that has come with attractive personal loan schemes for its existing retail asset customers (Home Loan, Loan Against Property and Auto Loan) with assessment norms and lower interest rate.

Rate of Interest, Processing Fee & Other Charges

What’s noteworthy is that the rate of interest is irrespective of the credit score assigned by the credit bureau with whom the public lender is tied up. The rate of interest is 10.25% per annum, while the processing fee remains INR 500 plus applicable Goods and Services Tax (GST). You can prepay the loan without having to pay any fee for the same.

Minimum and Maximum Loan Amount Offers

Minimum Loan – INR 25,000

Maximum Loan – INR 5,00,000

How Much Time Will You Get to Service Your COVID 19 Personal Loan Payments?

You can get a maximum of 5 years to repay the loan. However, the maximum tenure is contingent on the time left for the linked loan account to be over. So, if you get a Covid 19 personal loan scheme based on the home loan which is just 3 years away from being over, the maximum repayment time will be 3 years in this case. You will get a moratorium period of 3 months during which interest will be serviced. The loan is designed in a way that the proposed EMI of the personal loan won’t exceed 15% of the total cumulative EMIs you pay to BoB.

Eligibility

You are eligible for the offer on meeting the following conditions –

• You must have a minimum of 6 months relationship with the bank wherein the loan should be fully disbursed with the competition of the moratorium period.
• You must have paid at least three installments
• Your account must not have slipped in SMA1 category till Feb 29, 2020
• All the guarantors in the existing retail loan account will have to act as guarantors for the proposed personal loan

Bank of Maharashtra

Running your home loan with Bank of Maharashtra and are struggling to come to terms with the financial problems triggered by the COVID 19 pandemic? The bank is there to extend the helping hand! You can get a personal loan to meet all your expenses in this tough period. The scheme, which will be valid till 30th June 2020, will come with a zero processing fee.

How Much the Rate of Interest Will be?

The rate of interest will be 9.20% per annum.

How Much Loan Will You Get?

The loan amount will differ based on the type of profession and the income you earn. If you are salaried, the loan will amount to 10 times the latest monthly gross salary. In case you are self-employed, you can get a loan upto 60% of the latest annual income based on Income Tax Return (ITR). The maximum amount is, however, capped to INR 3 Lakh for both salaried and self-employed.

How Much Time Will You Get to Repay the Loan?

You will get a maximum of 3 years to repay the loan, including a moratorium period of 6 months. However, the repayment period is designed in a way that the personal loan gets paid off 3 months before the housing loan closure.

Punjab National Bank

The state-owned lender Punjab National Bank has introduced a personal loan scheme, namely PNB SAHYOG COVID 19. All permanent employees of public and private limited companies, hospitals, educational institutions, maintaining salary accounts with PNB or even Oriental Bank of Commerce and United Bank of India, which are now merged with PNB, are eligible for the loan offer. The loan is available to the existing housing loan customers of all three banks. The scheme, which will be available till June 30, 2020, ensures a maximum loan of INR 3 lakh for the borrowers. If this loan is to be availed by existing personal loan borrowers, the maximum limit will then rise to INR 10 lakh. Further, there will be no processing fee for the loan.

What is the Rate of Interest?

You’ll get the loan at an interest rate of 8.05% per annum

Maximum Time to be Given for Repayment

You’ll get a maximum of 3 years to repay the personal loan. However, the loan tenure won’t go beyond the time you attain 60 years of age. Accordingly, the lender will fix the repayment period.

How are COVID 19 Personal Loan Schemes Better than a Conventional Personal Loan?

From the schemes detailed so far, you can easily see the interest rates being way lower than a normal personal loan. If we consider these three banks, the rate falls to as low as 8.20%, with the highest rate being a shade above 10% i.e. 10.25%. If you speak of the normal personal loan rates, they can be anywhere from 10.35%-20% per annum. There’s a motive behind this cost-efficient loan pricing and that is to help many overcome the financial trauma at the face of the lockdown imposed by the government to curtail the spread of Covid19 virus.

Documents Needed to Obtain COVID 19 Personal Loan

Be ready with the following documents while applying for the COVID 19 Personal Loan.

Identity Proof – PAN Card/Voter ID/Driving License/Passport/Aadhaar Card

Residence Proof – Voter ID/Driving License/Passport/Aadhaar Card

Income Proof – Salary Slips for the Last 3 Months, Form-16, ITR for the Last 2-3 Years

How to Apply for the COVID Personal Loan Scheme?

You can apply for the same on the website of the lender which offers the said scheme. Download the form, take a printout of it, mention the details correctly and send the same along with scanned documents to the lender. After that, the lender will check the details thoroughly and accept the application only upon successful verification. If all goes well, the loan could be disbursed from a few hours to 3-4 working days.