COVID-19 Personal Loan Schemes: Eligibility, Interest Rate & How to Apply

As the nationwide lockdown continues, some leading banks in India have introduced special schemes for businesses and individuals to help them deal with emergency expenses resulting from the ongoing COVID-19 crisis.

List of Banks Providing COVID-19 Loans in India

• Bank of Maharashtra
• Punjab National Bank (PNB)
• Indian Overseas Bank (IOB)
• Bank of Baroda (BoB)
• Indian Bank
• Union Bank of India
• UCO Bank
• State Bank of India (SBI)
• Bank of India

Key details of some of these recently introduced COVID-19 personal loans and business loans are as follows:

1. Bank of Maharashtra Emergency Credit Line – Personal Loan Scheme COVID-19 for Individuals

Bank of Maharashtra is offering the Bank of Maharashtra Emergency Credit Line – Personal Loan Scheme COVID-19 to all its existing home loan customers so that they can meet the immediate liquidity requirements during the current COVID crisis. The scheme is available only till 30/06/2020.

Eligible Applicants:

1. Existing housing loan customers who have completed the security charge of their property in favour of bank and have started the repayment of an existing home loan
2. Existing housing loan customers who have already availed a personal loan are also eligible for the new scheme subject to deduction norms as specified by Bank of Maharashtra

Documents Required:

1. Application form duly signed along with guarantor’s form and assets and liabilities form
2. Proof of income: Salary slip of last 3 months showing all deductions or latest Form 16) duly attested by the employer
3. Proof of employment: Copy of photo ID card issued by the employer, employment order, employee number, etc.
4. PAN (Permanent Account Number) Card
5. Form 16/ certified ITR
6. KYC Documents: Aadhar Card, Passport, Voter ID, Ration Card, Driving License, etc.
7. Authorization to debit SB account/ ECS/ NACH mandate

Rate of Interest: Concessional interest rate of RLLR (7.45%) + 1.00% = 8.45% onwards

Repayment Period: Up to 36 months including Moratorium / holiday period of 6 months

Loan Quantum:

Deductions Norms: Not exceed 70% of the gross annual income including proposed EMI

For more information on the loan scheme, you contact the bank on the toll free number 1800-233-4526. Or send an email with your enquiry to cmcustomerservice@mahabank.co.in

2. Punjab National Bank SAHYOG COVID 19 Personal Loan Scheme for Individuals

PNB SAHYOG COVID 19 Personal Loan scheme is offered to existing customers of the bank to provide financial assistance so that they can meet medical or other personal financial needs as a result of the COVID-19 outbreak. The scheme is currently available only till 30.06.2020.

Eligible Applicants:

1. All salaried permanent/ confirmed employees of Central/State Govt./PSUs and all reputed organisations/ institutions including schools and colleges, autonomous bodies/ nursing homes/ hospitals who are drawing their salary through accounts in PNB (account holders with erstwhile OBC and UBI are also eligible)
2. Existing housing loan borrower of PNB (as well as those with existing home loans from erstwhile OBC and UBI) with up to date payments as of 15.03.2020.

Rate of Interest: RLLR (7.05%) + 1.00% = 8.05%

Repayment Period: Up to 36 months

Loan Quantum: Up to Rs. 3 lakh

Maximum Age of the Applicant: 60 years

If you want to know more about the personal loan scheme, you can call on toll free numbers: 1800-180-2222 or 1800-103-2222. You can also get details by sending an email to care@pnb.co.in

3. Punjab National Bank Aabhar Rin COVID 19 Personal Loan Scheme for Individuals

PNB Aabhar Rin COVID-19 is offered to pensioners to meet emergency financial needs amid the COVID-19 outbreak. The loan amount can be used to meet personal needs, including medical expenses. Currently this scheme can be availed only till 30^th June, 2020.

Eligible Applicants: All pensioners who draw their pension through branches of PNB are eligible for PNB Aabhar Rin COVID-19. 

Rate of Interest: RLLR (7.05%) + 2.00% = 9.05% onwards 

Repayment Period: Up to a maximum of 3 years (36 months), if you already have an ongoing pension loan with PNB. However, new applicants can repay the loan within a maximum tenure of 5 years (60 months).

Loan Quantum: Up to Rs. 2 lakh or three times of the average of the last six months pension credited to your account, whichever is lower. However, your monthly EMI for PNB Aabhar Rin COVID-19 personal loan should not exceed the below limits:

• 50% of gross monthly pension, if you receive up to Rs. 30,000 as monthly pension;
• 60% of gross monthly pension, if you receive more than Rs. 30,000 as monthly pension.

Maximum Age of the Applicant: Borrower needs to be less than 75 years old at the time of application. However, the personal loan should be paid off by the time the borrower is 75 years old.

Procedure to Apply: Fill out the application form for Pension Loan under PNB Aabhar- COVID 19 scheme and submit it to the bank along with a photograph, ID proof, address proof, date of birth proof, income proof and last six months’ bank statement of your pension account.

Processing and Documentation Charges: Nil

If you want to know more about the PNB Aabhar Rin COVID 19, you can call on PNB customer care toll-free numbers – 1800-180-2222 or 1800-103-2222. Alternatively, you can send an email to care@pnb.co.in to get further details.

4. Bank of India COVID-19 Personal Loan for Individuals

Bank of India (BoI) has introduced the COVID-19 Personal Loan (CPL) for individual borrowers to help them meet personal financial requirements resulting from the Corona virus crisis and resultant lockdown. The following are key features of this COVID-19 personal loan:

Eligibility

Eligible applicants for the Bank of India COVID-19 Personal Loan are:

• Salary account holders of BoI (if salary has been received in BoI account for at least 12 months)
• All existing Bank of India personal loan and home loan borrowers (irrespective of salary account tie-up)
• Not available to current/ex-staff of Bank of India

Loan Amount

Maximum loan amount sanctioned under the scheme is Rs. 5 lakh subject to following criteria:

• For self-employed – 3 times of monthly income as per last Income Tax Return
• For salaried – 3 times of latest gross monthly salary

Rate of Interest and Processing Fees

Bank of India COVID-19 Personal Loan is being offered at the concessional rate equal to BoI RBLR (Repo-based lending rate) of 7.25% p.a. Processing fee for this COVID-19 personal loan is NIL.

Loan Tenure

Maximum repayment tenure allowed for Bank of India CPL is 36 months including a moratorium of 6 months.

Documents Required

• Completely filled out BoI COVID-19 personal loan application form
• KYC documents
• Salary Slip/ITR

For further details regarding this COVID-19 personal loan and detailed application process you need to contact your nearest branch. Alternate contact details of Bank of India are:

e-Mail: BOI.COVID19@bankofindia.com

Toll-free phone numbers: 1800-220-229/1800-103-1906

Chargeable phone number: 022-409-1919     

5. Indian Overseas Bank Insta Pension-COVID-19 Relief Loan for Individuals

Indian Overseas Bank Insta Pension-COVID-19 Relief Loan is offered to pensioners to meet unexpected expenses due to Covid-19. This loan offer is currently valid up to 30/06/2020.

Eligible Applicants:

1. All Central Government, Defence, State Government, TNEB Pensioners, Retired IOB employees, etc. whose original Pension Payment Order (PPO) remains in the custody of Indian Overseas Bank
2. Other Pensioners, such as Pensioners of Municipal Corporations, State Government pensioners, Ex- gratia pensioners, etc., whose pensions are disbursed by Government Treasuries by means of cheques drawn in favour of the bank, as per mandate of the pensioner
3. Family pensioners of the above mentioned categories are also eligible

Please note that:

1. The ex-staff member pensioners of India Overseas Bank under any of the above category are not eligible for a personal loan under this scheme
2. Malaysian Government pensioners receiving pension through the bank are also not eligible to avail this loan scheme

Rate of Interest:  1 YR MCLR (8.50%) + 1.50% [0.20% (strategic premium) + 1.30% (Risk Premium)] = 10% onwards

Repayment period: The repayment period is 60 months for those who are less than 70 years and 36 months for those who are above 70 years. The repayment period also includes the moratorium/ holiday period of 3 months.

Loan Quantum:

Security:

1. For Pensioners up to 70 years: Either guarantee from spouse or any one of the legal heirs or from third party
2. For Pensioners above 70 years and for family pensioners: Either guarantee from spouse or any one of the legal heirs. If spouse/legal heir is not available, third party guarantee can be obtained

In case of any query, you can call the bank on 1800-425-4445 (toll- free number). Alternately you can request a call back from the bank’s customer care department by filling out the “Reach Us” form on the Indian Overseas Bank official website with you details.

6. Baroda Personal Loan COVID 19 by Bank of Baroda (BoB) for Individuals

Bank of Baroda has introduced the Baroda Personal Loan COVID 19 so that individuals can meet any personal purpose (except speculation purposes) including temporary liquidity mismatch due to COVID-19.

Eligible Applicants:

1. Customers with existing home loan (all variants), loan against property or auto loan with Bank of Baroda are eligible
2. They should also have a minimum relationship of 6 months with the bank where:

• Loan should be fully disbursed and moratorium period is completed
• Minimum three instalments are paid
• Account has never slipped in SMA1 category till 29.02.2020

3. Minimum credit score of applicant should be 650

Rate of Interest: BRLLR (Baroda Repo Linked Lending Rate) + SP+ 2.75% per annum with monthly rest (ROI is irrespective of credit score)

Repayment Period: Same as existing loan of applicant up to a maximum of 60 months

Loan Quantum: Rs. 25,000 to Rs. 5 lakh

Processing Charges: Rs. 500 plus applicable GST

For further queries, you can contact the customer care of Bank of Baroda at 1800 258 44 55 and 1800 102 44 55 (toll- free numbers).

7. IND-COVID – Emergency Salary Loan by Indian Bank for Salaried Individuals

This emergency COVID personal loan has been introduced by Indian Bank with the purpose of meeting any unforeseen expenses due to COVID 19. The following are the key features of the IND-COVID – Emergency Salary Loan:

Eligible Applicants :

1) Permanent Government/Quasi Government/MNCs/Board/Other reputed company employees with minimum 2 years of service in the current organisation who have salary account with Indian Bank.

2) Existing Indian Bank Home Loan borrowers (irrespective of salary account maintained with Indian Bank)

3) Existing borrowers of Indian Bank Salary Loan

Rate of Interest: 9.50% p.a. fixed rate

Repayment period: Up to 36 months including moratorium period of 6 months

Loan Quantum: 20 times gross monthly salary up to a maximum of Rs. 2 lakh   

Processing Fess/Prepayment Charges: Nil

Minimum age of applicant: 21 years

8. IND-COVID – Emergency Pension Loan by Indian Bank for Pensioners

The IND-COVID Emergency Pension Loan from Indian Bank is designed to provide financial assistance to pensioners for unforeseen expenses related to COVID -19.

Eligible Applicants:

1) Central and State Government pensioners as well as family pensioners and Indian Bank retirees (both voluntary and superannuation retirees) drawing their pension through Indian Bank.

2) Existing borrowers under the Indian Bank Pension Loan scheme

Note: CRS retirees and EPF pensioners are not eligible for IND-COVID Emergency Pension Loan

Rate of interest: 8.75% p.a. fixed rate

Repayment period: Maximum 36 months including moratorium of 3 months

Loan Quantum: 15 times net monthly pension less TDS up to a maximum of Rs. 2 lakh

Processing Fess/Prepayment Charges: Nil

Age related criteria:  No minimum age of entry. For regular pensioners maximum entry age is 68 years and maximum exit age is 75 years. For family pensioner maximum entry age is 68 years and minimum exit age is 73 years.

For more details and additional features of these loans, customers can contact Indian Bank Toll free numbers – 1800-425-000-00 or 1800-425-4422*. Alternately, you can send an email with details of your query to the following:

• ibhocustomerservice@indianbank.co.in
• hopbd@indianbank.co.in
• indianbank@indianbank.co.in

9. State Bank of India COVID-19 Emergency Credit Line for Businesses

India’s largest public sector lender, SBI has announced an additional ad-hoc credit line facility for existing business borrowers to help them mitigate liquidity problems caused by the current Corona virus crisis. Some key details of this scheme include:

• Interest rate of 7.25% (fixed rate)
• Repayment period 6 EMIs after 6 month moratorium period
• Maximum loan amount of Rs. 200 crore (10% of existing Fund Based Working Capital)

Additional details related to scheme may be obtained from nearby SBI branch, the official SBI website or you can email your queries to customercare@sbi.co.in

State Bank of India toll-free contact center numbers are – 1800-11-2211 and 1800-425-3800

10. IND-MSE COVID Emergency Loan by Indian Bank for Businesses

All existing Indian Bank micro and small borrowers are allowed to avail this facility and meet their temporary liquidity shortage due to COVID 19 outbreak. Offer is valid till 30^th September 2020 and this emergency credit line features Nil processing fees and service charges. Some of the other key features are:

• Interest rate of 8.75% p.a. fixed rate
• Loan amount of up to 50 lakhs max. (10% of working capital)
• Repayment period max. 36 months for loans of up to Rs. 25 lakhs and max. 60 months for loans over 25 lakhs.
• Maximum moratorium period of 6 months.

11. SHG-COVID – Sahaya Loan by Indian Bank for Self Help Groups

Another Indian Bank offering for emergency COVID-19 related cash crunch, this is targeted at self-help groups (SHGs) across the country. The maximum loan amount is Rs. 1 lakh for each SHG with loan tenure of 36 months and moratorium of 6 months.

You can contact Indian Bank on Toll free numbers – 1800-425-000-00 or 1800-425-4422* or

Email Indian Bank at hosmed.policy@indianbank.co.in / indianbank@indianbank.co.in

12. Union Bank of India COVID Emergency Line of Credit for Businesses

Union Bank of India has also announced its COVID emergency line of credit for its existing customers. While details are currently awaited, this product is also expected to provide much needed relief due to liquidity disruptions of businesses caused by the COVID-19 crisis.

Union Bank of India contact details: Toll free numbers – 1800-2222-44 / 1800-208-2244* or email Union Bank of India at – Customercare@unionbankofindia.in with details of your query.

Read: Line of Credit – Eligibility, Features and How to Get

13. UCO Bank COVID 19 Emergency Credit Line for Businesses

This adhoc credit facility announced by UCO Bank is designed to help businesses meet the temporary cash flow crunch and liquidity as a result of the COVID-19 crisis. While specifics are currently available, you may find additional details on the UCO Bank official website or by contacting them.

UCO Bank contact details – Toll free number: 1800-274-0123* / email – customercare.calcutta@ucobank.co.in or hopgr.calcutta@ucobank.co.in

14. Indian Overseas Bank COVID Line of Support Scheme for MSME Businesses

This COVID emergency loan scheme for medium and small enterprises (MSME) from Indian Overseas Bank (IOB) is available to all current MSME borrowers of the bank. Key features include:

• Working capital loan for up to 12 months
• Maximum loan amount of Rs. 1 crore
• Repayment allowed in 6 monthly instalments
• Nil prepayment charges

As per the current notification, further details regarding terms and conditions of the scheme are available at nearby IOB branches. Other ways to contact the bank include the toll free number: 1800-425-4445*. Alternately you can provide your Name, Email and Mobile number along with query details in the “Reach Us” section of the Indian Overseas Bank official website to get a call back/email response from a bank representative.

Must Read: COVID-19 Relief package for MSMEs

How to Apply for COVID-19 Personal loans?

As of now you cannot apply for a COVID-19 personal loan online. Thus, you need to contact your bank directly to know the details of the COVID-19 emergency loan application process. The following are the contact details of major COVID-19 loan providers in india”.

*Please note that response from bank customer care contact numbers may be delayed as most banks are currently operating with limited staff in view of the COVID-19 crisis.