Loan benefits

4 Best PSU Banks with the Cheapest Interest Rates on COVID-19 Personal Loans

Planning

oi-Vipul Das

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To cover the costs of Covid-19 treatment for yourself and your family, major public sector banks have declared COVID-19 personal loans of up to Rs 5 lakh. These loans are available at low interest rates for salaried, self-employed and retiree with a term of 5 years and no processing fees. Borrowers who are tested Covid Positive as of 04/01/2021 must provide a COVID-positive report to the bank in order for the loan amount to be sanctioned. So, if you want to get a personal loan for COVID-19 treatment, these are the top four government banks that currently offer the lowest interest rates.

SBI KAVACH personal loan program

SBI KAVACH personal loan program

Here are the features and benefits of the KAVACH personal loan program according to the SBI official website:

  • Minimum and maximum loan amount: Minimum: Rs. 25,000 & Maximum: Rs. 5 Lakhs depending on eligibility.
  • Ease of repayment: Available through branch channel, digital channel (pre-approved through YONO).
  • Loan disbursement: Credit on the client’s Salary / Pension / SB account
  • CIC (CIBIL CV Score): In accordance with the Bank‘s internal policy
  • Loan facility: Term loan
  • Target group: Bank clients such as employees, non-employees and retirees
  • Term of the loan : 60 months (including 3 months of moratorium). Loan to repay in 57 IME including interest charged during moratorium.
  • Interest rate : 8.50% currently (minimum 100 bps lower than a similar unsecured product from the bank)
  • Method of reimbursement: Standing instruction (SI) on the Salary / Pension / SB / CA account.
  • Processing fee: NIL
  • Security: NIL
  • Penalty for early repayment: NIL
  • Foreclosure fees: NIL
Punjab National Bank Sahyog RIN COVID - Personal Loan Program

Punjab National Bank Sahyog RIN COVID – Personal Loan Program

This is a personal loan plan offered by Punjab National Bank for COVID treatment of oneself or family members as of April 1, 2021. Here are the features and benefits of the PNB personal loan program Sahyog RIN COVID according to the bank’s official website.

  • Validity: The plans will be valid until 03.31.2022.
  • Eligibility: All employees (government or private) having a salary account with us and receiving a regular salary during the last 12 months.
  • Nature of loan: Term loan
  • Amount of the loan: For Employees: Six times the average of the last 6 months of salary credited to the account. (Salary to be verified from the statement of account). Maximum of Rs. 3 Lakh. Note: The maximum loan amount per borrower under the personal loan program is Rs10.00 Lakh (Rs15.00 lakh in the case of doctors) including a new loan under the PNB Personal Loan – PNB Sahyog COVID.
  • Ease of repayment: Up to 3 months
  • Minimum allowable deductions: For gross monthly salary / income, the maximum allowable deduction will be: up to Rs. 30,000.00 and above Rs. 30,000.00: 65%.
  • Income criteria: Rs. 15,000.00 in the metropolitan / urban center and Rs. 10,000.00 in the semi-urban / rural center.
  • Term of the loan : Maximum 60 months or remaining service period, whichever is shorter (including physicians).
  • Safety / Guarantee: In accordance with the existing guidelines of the “Personal loan scheme for salaried persons – PNB Sahayog Rin.
  • Interest rate: RLLR + 1.70%
  • CIC Note: 650 and more
  • Processing and documentation costs: NIL
Bank of India COVID-19 Personal Loan

Bank of India COVID-19 Personal Loan

Here are the main features of the product, according to Bank of India official website.

  • Eligibility: Clients Payroll withdrawal through bank for over a year, and all existing standard personal loans, including home loan clients.
  • Amount of the loan: 3 times the last gross salary received; Maximum: Rs. 5.00 Lakhs (for employees). 3 times the last gross salary drawn for salaried persons, maximum: Rs. 5.00 Lakhs and 3 times the monthly income based on the last ITR in the case of self-employed borrowers; Maximum: Rs. 5.00 Lakhs for existing home loans / personal clients.
  • Interest rate: Floating RBLR with monthly rests (check website for latest interest rate).
  • Processing fee: NIL
  • Refund: 36 months including a moratorium period of 6 months.
Baroda Covid 2.0 personal loan

Baroda Covid 2.0 personal loan

According to the official Bank of Baroda website, here are the basic benefits of Baroda COVID 2.0 personal loan.

  • Purpose of the loan: To cover COVID treatment expenses or temporary financial deficits caused by COVID-19.
  • Eligibility: Customers with mortgages and mortgages with a minimum of 6 months of relationship with the bank. Limousine loan with a relationship of at least 12 months subject to certain terms and conditions.
  • Amount of the loan: Minimum loan amount Rs25,000 up to a limit of Rs 5 lakhs subject to 10% of the original sanctioned limit of the linked mortgage loan and 10% of the initial sanctioned limit of the linked LAP.
  • Interest rate: 2.00% on BRLLR + SP, regardless of the CIBIL score. But not less than the ROI of the linked loan.
  • Prepayment charges: NIL

Article first published: Wednesday, July 14, 2021, 11:53 a.m. [IST]


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