The world had never seen a pandemic like this before. The COVID-19 crisis has prolonged for over half a year now and does not seem to fade away, having created distress in the Indian economy and across the globe. While the Indian government came up with many relief packages for poor people who lost their livelihood, others were also offered help to boost their financial health through COVID-19 specific personal loans.
Features of COVID Specific Personal Loans
- Lower interest rates
- Offered by both NBFC and banks
- Amount financed up to Rs 5 lakhs
- Loan term varies between 6 months to 5 years
- No prepayment fees
- Low or no processing fees
Who Should Take COVID Specific Personal Loan?
- Existing Loan Borrowers
COVID specific personal loan facility is given to existing loan borrowers by their respective banks. The limit of this type of personal loan is only Rs 5 lakhs. If you are facing any financial problems during this pandemic, you can consider taking this personal loan as it has a lower rate of interest.
- Pension Account Holders
The COVID specific personal loan is also available for pension account holders. The features of this type of personal loan remain the same for all. Although the amount is limited, it can help boost your financial resources during this pandemic. It is advisable to take this personal loan if you have lost sources of income.
- Salary Account Holders
Salary account holders can also take this type of personal loan with the same features. It is the right choice if you have low or no outstanding credit dues. Personal loans of this sort can help you revive from the cash crunch caused due to various reasons such as high pay cuts.
You can take a COVID-19 specific personal loan from the bank where you have opened your salary account. This way, your banking relationship can help get lower rates of interest or other specifics.
- High Credit Score & Banking Relationship
You can also apply for COVID specific loan if you have a CIBIL or Credit score of above 750 along with a good banking relationship history with your preferred bank. Your application is likely to get rejected if you have a lower CIBIL score. It is advisable to maintain a better rating by clearing credit dues before applying for COVID specific personal loan.
Personal Loan Eligibility Criteria
For getting a COVID specific personal loan, you can look at different eligibility criteria set by various banks & NBFCs. The general criteria are:
|Age||Above 21 years|
|Status of Employment||Employed or in-business for more than 2 years|
|Net Monthly Salary||Above Rs 15,000|
|CIBIL or Credit Score||750+|
|Employment Type||Salaried, business owner, self-employed|
|Maximum EMI||Up to 65% of monthly income|
Besides, you can also use an online EMI calculator to know your eligibility better. Furthermore, you should have a good loan repayment history for getting personal loan approval.
Stimulate Your Liquidity with a Personal Loan
Many people are facing a financial crisis because of the COVID-19 pandemic. It has stirred the Indian economy. Although measures are being taken to revive the same, they are not sufficient for all.
If you want to enjoy consistent liquidity during this pandemic, you can apply for a personal loan through a bank. Your application will be approved once you meet the eligibility criteria. Major reputable banks like Axis bank are making this process easy for their customers by offering online calculators and excellent customer support services. They are also providing a zero charge facility on foreclosure and part payment against the personal loan amount you have taken. You can avail of this facility easily to stimulate your liquidity during this pandemic.
Make sure you carefully assess your needs and liabilities before applying for a personal loan.