As everyone is affected by the nationwide lockdown, it is a tough time for all facing cash crunches. Even salaried individuals are facing pay cuts and unemployment. So, to ease the financial strain, many banks and NBFCs are offering personal loans for pandemic crises. Know more about how to get a personal loan.
These personal loans are a type of loan which are specially designed to meet your immediate cash crunch needs during the ongoing lockdown. Most banks are offering these loans to home loan borrowers and to individuals who are an existing customer with the bank. The borrower needs to have a salaried account or personal account with the bank. Existing customers, who have a Credit Score of above 650, are eligible for the loan. This loan amount comes at attractive interest rates, and you will be charged with minimal processing fee, with a loan repayment period of up to 3 months.
Bank of Maharashtra is offering the Bank of Maharashtra Emergency Credit Line loan scheme to all its existing customers for housing loans. These loans can help meet the immediate liquidity requirements during the current pandemic crisis. With these loans, you can avail a maximum loan amount of up to Rs. 3 Lakhs for both salaried and self-employed housing loan customers.
Punjab National Bank pandemic specific loan scheme is offered to existing customers. The loan funds can be used to cover medical or other expenses and personal financial needs as a result of the lockdown. The loans are being offered to existing customers who have a salary account with the bank. Customers having an existing salaried account with United Bank of India and Oriental Bank of Commerce, which are now merged with PNB, are also eligible for the loan.
Bank of Baroda has introduced these special loans for individuals who can meet any financial requirements with ease. To be eligible for the loan, the borrowers should have a minimum of six months’ relationship with the bank. And the existing loan amount should have been fully disbursed to the borrower before applying for these personal loans. If an individual applying for this loan has an existing loan that is not yet closed and has a moratorium, then the moratorium period needs to be completed. At least three instalments of the original loan must have been paid before the borrower applies for another loan. Also, having a good past credit record in repaying loans is crucial to be eligible for a loan.
Bank of India (BoI) has introduced these loans for individual borrowers to help them meet personal financial requirements resulting from the pandemic crisis and resultant lockdown. These loans can be easily availed by existing salary account holders and housing loan customers of the bank. If you have a home loan or a salary account with Bank of India, you are eligible to apply for this special loan to meet your financial crisis.
These loans come with lower interest rates than regular personal loans and may also come with a limited version of the moratorium.The rate of interest on these loans is between 7% to 10%, which is lower than the normal rate of interest of personal loan which starts from 12% and can go up to 20%, depending on your credit score and monthly income.
Most banks are offering a rate of interest of up to 15% on these loans. Hence, this type of loan may ease out the liquidity crunch in the short run. These loan schemes are offered purposely at low-interest rates to help anyone whose cash flows may have got impacted due to the lockdown.
Due to the lockdown, there will be a scarcity of staff for most lenders, with very limited working hours. So, availing these pandemic specific personal loans would depend on the capacity of the banks to process, approve and disburse the funds during the lockdown period. But you also have the option to apply for a loan online and send your loan application, the bank officials will get in touch with you for further verification.
Different banks have different criteria on the loan amount one can apply for. The credit limit for a self-employed individual is usually 50% to 60% of their last filed income. For salaried personnel, it is about 10 times the monthly income. Some of the banks are offering a moratorium of three to six months on all outstanding loans falling due between March 1, 2020, to May 31, 2020, including home, educational, personal and car loans. It means the borrower doesn’t have to repay loan EMI during the moratorium period.
During the moratorium, interest is charged on the loan repayment costs of the borrower. However, a penalty of 2% will be charged for non-payment or delayed payment on the outstanding amount. This will be considered as an additional cost on the loan amount, if you are unable to repay EMIs by the due date. While it is still not clear as to how long this crisis will continue, you can make the most of these pandemic specific loans and fulfil your financial requirements with ease.
Getting a loan is an ideal option to meet all your financial needs during the pandemic outbreak. But before applying for a loan, you need to make sure to consult with a trustworthy bank or financial institution and weigh all your options. With online platforms like Finserv MARKETS, you can avail an instant personal loan without a guarantor. The process of loan application is quite simple, you can enjoy a higher loan amount with a Bajaj Finserv Personal loan and repay it over the flexible tenure. To calculate your monthly instalments you can take the help of an personal loan calculator. Get personalized pre-approved offers, instant approvals and flexible repayment tenures of 12 to 60 months. Apply online with a personal loan app by Finserv MARKETS and get pre-approved offers for an instant personal loan without security.
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