COVID-19 has affected many businesses such as commercial centers, private enterprises, including banks, etc. However, banks offer loans to existing clients in need of emergency financing.
Millions of day-to-day people have lost their jobs since the closure of the department, and some resources have been cut off. Loans offered to banks at this stage will come at a lower interest rate, than standard lending rates.
Also, it may come with a limited suspension. Most banks offer interest rates of 15 percent on personal loans. Generally, personal loans have an interest rate of 18%, which can increase up to 24%.
Bank lending policy According to reports, Maharashtra Bank said borrowers should have a minimum six-month relationship with banks. And the existing loan amount must have been paid in full to the borrower before applying for the COVID-19 product.
If the first loan has an end, then the suspension period should have been completed. Also, at least three installments of the original loan must have been paid out before the borrower can apply for the loan.
The Bank of Maharashtra offers these loans only to its existing home loan clients. In the case of Baroda Bank, customers should have taken out a pre-existing loan, car, home, personal, education and more to get an emergency loan.
Most banks currently work with fewer employees for limited hours. Obtaining these direct COVID-19 loans will depend on the ability of the lenders and repay these loans during the closing period.
SBI emergency loans
India’s largest public sector bank – State Bank of India offers relief to SBI account holders by offering Rs. 5 lakh loan within one hour. The main lender offers emergency loans between COVID-19. Loans can be found online in the YONO APP. The interest rate on loans is 10.5 percent, which is a small amount compared to other personal loans. The SBI’s emergency loan program focuses on people who have been deprived of their salaries and job losses during the closure. The lender has come up with an emergency loan program to help clients facing financial difficulties within Coronavirus. The good news is that you will have to pay the same monthly installments for these loans after six months.
Check Loan Credit
You can check your eligibility for this loan by sending an SMS ‘PAPL’ and save the SBI account number to 567676. The bank will respond to your eligibility question immediately via SMS. The client can also check the suitability of the loan program in the YONO APP.
How do you apply for an SBI emergency loan?
Follow these steps to get an SBI loan-
- Go to the YONO APP, click on pre-authorized loans
- Select duration and loan amount (Limit of Rs. 5 lakh)
- OTP will be sent to the registered mobile number, deliver it
- The loan will be credited to the account for less than an hour.
Banks offer an emergency loan program, but there is a benefit for the SBI account holder to pay less interest. Meanwhile, some banks have also reduced their interest rates compared to their normal lending rates. This proves that lenders are standing behind their clients to help in these difficult times.