As the dark clouds of COVID-19 are looming over the country, many people are unable to earn a living due to the lockdown. Many small business owners are facing a financial crisis as their businesses have been shut down in the lockdown. As the lockdown has been extended till 3rd May, it is anticipated that the problem may worsen. To resolve the problem to an extent, Bank of Baroda government sector has introduced a special COVID-19 loan. Basically, it is a personal loan, which any retail customer can take advantage of. Under this scheme, a customer can take a loan of maximum Rs 5 lakh in the need of the hour.
Bank of Baroda has broken out the information about the scheme through a note on its website. The note says, “As the countries all over the globe including India are facing a severe pandemic disease i.e. COVID-19. It has expanded its wings in more than 180 countries within the recent past and considerably damaged humankind. In India, it is also expanding and to stop its exponential growth state/ central government locking down cities/ states. This lockdown status may create some temporary liquidity mismatch and to overcome the same, the Bank has launched a new Personal Loan scheme for its existing quality retail asset customers with relaxed assessment norms and a lower rate of interest. This PL scheme will help to tackle the present critical situation.”
Personal loans up to a maximum of Rs 5 lakh can be taken under the special COVID-19 loan. The scheme can be availed till 30 September 2020. Customers can take advantage of this to meet their immediate needs. Some of the key benefits of the scheme are as follows:
Rate of interest: BRLLR + SP + 2.75% pa (with monthly interest)
Penal interest: Penal interest @ 2%. If the outstanding amount or the terms and conditions are not met, a 2% panel interest means penalty interest.
Prepayment charge: nothing
Processing charge: Rs 500 and applicable
GST Loan limit
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Minimum: Rs 25,000
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Maximum: 5 Lakhs
Return period: 60 months
Target Group
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Home Loan (all variants)
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Loan Against Property
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Auto Loan
