The immediate and severe impacts of the ongoing COVID-19 crisis can be seen in various sectors, especially the employment sector. Due to this people are dealing with various financial crises that’s influencing their day-to-day life. This has enabled certain banks to “lend” helping hands to people via personal loans. In this article, we briefly describe “COVID-19 personal loans” and important things to know before applying.
What Are COVID-19 Personal Loans?
It’s a new kind of personal loan that is offered by NBFCs and banks of Bank of Baroda, Union Bank of India, Punjab National Bank, etc. It thoroughly satisfies situations like salary cut, lay off, and unforeseen income shortfall during COVID pandemic.
It is provided with a lower interest rate (7%-10%) compared to normal interest rate. It’s the biggest relaxation to the customers to whom banks are offering loans.
Who Can Avail The Personal Loan?
The COVID-19 personal loans are offered to customers with existing salary accounts and good credit score. With a decent repayment track record, the borrowing criteria gets fulfilled. It is to be noted that the loans should be taken only in case of urgent requirement or need. It puts you off adding more debt.
How It Can Be Used?
All the above banks enable you to utilize loan for marriage-related expenses, child’s education, family vacation, purchasing electronic gadgets, and renovating your home.
Moreover, it can be invested in business, or paying down payment of your new house or car. It can even fulfil unexpected medical emergencies in tough times.
What’s The Maximum Loan Amount?
The maximum amount of personal loan that can be offered to a borrower is Rs 2.5-5 Lakh as per his/her monthly salary. You can visit your existing branch to avail all the benefits of personal loans. It is mandatory to visit your respective branch to fill details required in an emergency loan application.
Thanks to COVID-19 personal loans that will help you to meet your household needs or shortfalls.