The COVID 19 pandemic has crippled the world economy and has managed to restrict the peptizes to maintain social distancing, increased hygiene, and work from home. The factorization in their houses. The governments of the countries around the world have urged the city and the job markets lost the momentum and were forced to come to a halt. As a result, the world experienced job losses. The above factors impacted the financial health of people adversely. Those who have an outstanding loan or credit card repayments are facing a critical situation. But wait, we have a way out from this problem as well. The key to financial freedom is taking up personal loans. That’s right! We will help you understand the benefits of taking the personal loan with the help of a guide for personal loans. The public sector banks started offering special COVID-19 personal loans. The question arises whether these loans are beneficial in the long run or not. Well, let’s find out.
Personal loans during COVID-19
Before you take the personal loan from the public sector banks, here are some tips and facts about the COVID-19 personal loans. The public sector banks came up with a solution for the ongoing financial crisis in the nation.
The solution got the name COVID-19 loan because of the situation present at the moment. This aims to help the existing customers to survive the temporary monetary crisis due to the ongoing COVID-19 pandemic. People can use this personal loan scheme to manage their expenses and meet the essential needs during this critical time.
The eligibility criteria for COVID-19 personal loan
The COVID-19 personal loan has a different set of eligibility criteria as it is quite different from normal personal loans. The people who currently hold a loan, a person or a salary account with the bank can apply for the COVID-19 personal loans.
Also, there exist certain terms and conditions which need to be read before you apply for the loan. For further details, you must check out with the desired bank inc case you fulfill the eligibility criteria. Public sector banks such as Union Bank of India, Bank of Baroda and Punjab National Bank are some of the bank offering COVID-10 personal loans.
The rate of interest and loan amount
The rate of interest for COVID-19 personal loans range between 7.2 percent to 10.5 percent per anum. It differs from the regular personal loan because, in the case of the general personal loan, the rate of interest ranges from 9 percent to 24 percent per anum. Remember that these personal loans are special loans and the conditions present in this type of loans are quite different from a regular personal loan.
The loan amount for a COVDI-19 personal loan starts from 25K INR and exceeds up to a maximum of 5 lakhs INR. The minimum and the maximum limit of the COVID-19 personal loans depends and varies from bank to bank. Generally, these loans do not have any processing fees or any hidden charges.
Is it beneficial to take the COVID-19 personal loan?
You take up a personal loan to clear off the debts and the outstanding credit card bills. In simple words, you take a loan to clear off other loans. The COVID-19 personal loans have a lower interest rate compared to general personal loans. In a way, this special personal loan can help you clear off the debts of your other high-interest rate loans such as the credit card dues and other existing loans. You can lower your debt burden with the help of this loan.
On the other side, you must think of the present situation carefully before taking up the loan. The COVID-19 lockdown situation is a temporary one and after a certain time, the lock-downs will get lifted and the economic stability will come back. The cash crunch issues you are facing now might be a temporary one.
Think about it and carefully go through the terms and conditions before applying for the loan. Make sure you clear off all your debts with this special loan so that you can concentrate on clearing one single loan. Make sure you follow a guide for a personal loan and start your progress towards your financial stability.