Many banks have launched covid-19 Special Loans for their existing loan holders and salary account holders.
Many banks have launched covid-19 Special Loans for their existing loan holders and salary account holders. Its goal is to provide relief to customers in the difficulty of liquidity caused by lockdown. These special personal loans for covid-19 are different from normal loans. Let us compare general personal loan and covid-19 personal loan.
Loan qualification
The eligibility of a personal loan depends on the job profile of the borrower, monthly income, employer profile, credit score etc. Most banks and NBFCs do not require any existing relationship for the loan applicant. However, covid-19 personal loans are for existing borrowers or those who maintain a salary account with the bank. Apart from this, applicants should have a good track record of repayment of loan before lockdown.
Loan amount
The loan amount for a personal loan usually ranges from Rs 50,000 to Rs 20 lakh. covid-19 personal loans are difficult to relate to the liquidity caused by lockdown, hence the loan amount is low. It ranges between Rs 25,000 and Rs 5 lakh.
Interest rate and processing fees
The interest rate for a common personal loan is 9 to 24 per cent per annum, depending on the credit profile of the lender and the person. Processing fees can go up to 3 percent of the loan amount. covid-19 personal loans are given by lenders to their existing customers, so they charge a lower rate of interest, which starts at 7.2 per cent annually and goes up to 10.5 per cent. Most lenders do not charge any processing fees for the covid-19 loan.
Loan period
The term of personal loan ranges from 1 to 5 years. In some loans, it is maximum for seven years. covid-19 Most of the lenders are giving loans for personal loans with a tenure of up to three years, with some giving a maximum period of 5 years. Apart from this, most banks are also offering Moratorium of 3 to 6 months on these loans. The borrowers are required to pay only a fraction of the interest during the period of the moratorium.
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