If you have an ongoing income or loan account that you do not miss out on a single monthly equity installment (EMI) at a public sector bank (PSB), you can get a new loan product called a covid-19 loan. For a much lower price than conventional personal loans, this product aims to help existing bank customers cope with the temporary collapse due to the effects of the covid-19 epidemic.
Other banks offering covid-19 personal loans are Bank of Baroda (BoB), Punjab National Bank (PNB), Union Bank of India (UBI), Bank of Maharashtra (BoM), and Bank of India (BoI).
The eligibility criteria for these loans are different from those for a standard personal loan. For example, the Bank Of India Personal Loan gives money to customers who have been earning bank salaries for at least a year, or to those who have an existing home or personal loan. PNB, which has named its product Sahyog covid-19, is also offering it to existing customers who withdraw their salary from the bank. The maximum loan limit for most banks is at ₹ 3 lakh-5 lakh, and there is no processing fee. The minimum ticket size varies at the bank.
Should you take them?
These loans make sense for those looking for a consolidation of their loans. Say, you have an outstanding credit card. You can use these loans, which are available at a very low-interest rate, and pay off the credit card issuer. However, you should avoid taking these loans to meet your cash flow needs. To obtain a loan to meet the financial challenges, one must be confident that the problem is temporary. But we have a closure in place and no one knows yet how and when it will be raised. Most people will not be sure whether the flow of money is temporary or whether it is an ongoing problem. If the situation does not improve, companies may continue to cut wages or choose to lay off workers. When the future is uncertain, it is unreasonable to take on too much debt. Do not interrupt the product only because the cost is low. It is best to avoid new energy in the current environment.
In today’s time where so many lenders have come up with their exciting deals with the offering of Personal Loans, it has become difficult for the borrowers to decide and select one single lender that suits their needs and situations the best.
We at Dialabank with a team of experts in the financial advisory are here to guide you through the various financial products available in the market.
Call us today to get your queries resolved- 9878981166