COVID-19 has affected many businesses like commercial establishments, private operations, including banks, etc. Yet, banks are Offering loans to the existing customers who are in need of emergency funds. Millions of daily earner have lost their jobs since the lockdown, while other services have been furloughed.
The loan offered by the banks during this phase will come with lower interest rates, than regular loan rates. Also, it may come with a limited moratorium. Most banks are offering an interest rate of 15 per cent on personal loans. Typically, the personal loans have an interest rate of 18 per cent, which can go higher to 24 per cent.
As per reports, the Maharashtra Bank stated that the borrowers should have a minimum of six month relationship with the banks. And the existing loan amount should have been fully disbursed to the borrower before applying for the COVID-19 product. If the original loan has a moratorium, then the moratorium period should also have been completed. And, at least three instalments of the original loan must have been paid before borrowers apply for a loan.
Bank of Maharashtra is offering such loans only to its existing housing loan customers. In case of Bank of Baroda, customers should have earlier taken car, home, personal, education and other loans in order to avail such emergency loans.
Most bankers are currently working with limited staff for limited hours. Availing these COVID-19 specific personal loans will rely on the capacity of the lenders and disburse these loans during the lockdown period.
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India’s largest public sector bank - State Bank of India is giving relief to the SBI account holders by giving Rs. 5 lakh loan within an hour. The largest lender is offering emergency loans in the amid of COVID-19. The loans can be availed online from the YONO APP. The interest rate of the loan is 10.5 per cent, which is less as compared to other personal loans. This emergency loan scheme from the SBI focuses on the people those who have been experiencing salary cuts and job losses in the midst of lockdown.
The lender came out with the emergency loan scheme to assist the customers who are facing financial difficulties in the midst of Coronavirus. The good news is that you will have to pay the equated monthly instalments of these loans after six months.
You can check your eligibility for this loan by sending SMS as
‘PAPL and last four digit SBI account number to 567676. The bank will respond your eligibility query promptly via SMS. The customer can also check the eligibility for the loan scheme in the YONO APP.
Follow these steps to avail the SBI loan-
Banks are offering emergency loans scheme, but there is an advantage for the SBI account holder to pay less interest. Meanwhile, other banks have also reduced their interest rates compared to their regular loan rates. This proves that the lenders have stood behind their customers to assist in these difficult times.
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