Amid covid-19, relief was provided for farmers, poor labourers, common man and businessmen in many ways. Along with the central and state government, several loan schemes were also started by banks. Some banks which came forward in this regard are State Bank of India (SBI), Bank of India, Bank of Baroda, & Punjab National Bank.
These banks are now going to present a special loan scheme. This loan scheme has been named covid-19, which is a special loan scheme of the leading public sector banks of the country.
What is Covid-19 Special Loan Scheme?
As per the banks, the rate of this loan will be lower than that of a personal loan. The interesting part is that this loan will be provided by banks as well as many financial institutions with special offers through mobile applications. It is also being told that a large number of cash will be made available to banks by the RBI.
Covid-19 is a general personal loan provided by banks, which is being started at the time of this pandemic. Therefore, it is named covid-19. Banks claim that the rate of this loan will be lower than that of an ordinary personal loan. But it will depend on things like the previous track record of the person taking the loan and the CIBIL score.
What are the terms & conditions of covid-19 loan?
1. The bank will give loans ranging from 75,000 to 5 lakh rupees.
2. The rate of interest on this loan can be from 8 to 15 percent.
3. The bank or financial institution will not charge any processing fees on the loan.
4. The loan period will be from 6 months to 5 years. For how long you have to take a loan, it has to be selected in the application.
5. Banks have not placed any prepayment fee on this loan. That is, if a person takes this loan for 3 years and he pays the loan only after 6 months, then no fee will be charged from him.
Who can avail Covid-19 Loan?
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Banks are providing this loan only to their old customers.
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Those who have a salary account in the bank or their EMI of loan is getting deducted, covid-19 loan will be given to them first.
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The old track record will be noted by the bank.
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Loan will be given to the person keeping good CIBIL records.
Should I take covid-19 loan or not?
At this time, the question must be arising in the minds of all the people whether taking a covid-19 loan will be right or not. However, if you are also facing a cash crisis, then you can make an idea to take this loan. But those who can easily arrange money must consider before taking this loan once. It is to be noted that, if you missed paying the loan installment, then you can also face a heavy penalty. If you take a loan, then take it of the least amount.
