Good news! Now individuals can apply for unsecured loans up to Rs 5 lakh from public sector banks for covid treatment. This comes in the aftermath of the pandemic's current second wave, which has swept the country, wreaking havoc on families.
According to a joint statement, PSBs will give "unsecured personal loans to individuals from Rs 25,000 to Rs 5 lakhs for salaried, non-salaried, and retirees for meeting Covid treatment."
Covid Treatment Loan Details
Individuals, including paid, non-salaried, and pensioners, can apply for unsecured personal loans ranging from 25,000 to 5 lakh to pay COVID-19 treatment, according to announcements made at a joint press conference by the Indian Banks' Association (IBA) and State Bank of India (SBI). The payback period is 5 years, with an annual interest rate of 8.5 percent charged by SBI. Other banks can set their own interest rates.
Loan amount: Rs 25,000- Rs 5 Lakh
Loan Duration: Upto 5 Years
Interest Rates: 8.5% by SBI
An unsecured loan does not require collateral such as land, jewelry but you will still be charged interest and fees.
This is one of three new loan products they introduced on Sunday to help vaccine makers, hospitals/dispensaries, pathology labs, makers and providers of oxygen, ventilators, importers of vaccines, and COVID-related pharmaceuticals logistical firms, and individuals with COVID-19.
According to the release, all of the foregoing plans are being offered by PSBs at concessionary interest rates and will constitute part of the Covid loan book. PSBs have developed a templated strategy for debt restructuring as part of the 'Resolution Framework 2.0.'
Emergency credit guarantee scheme
It goes on to say that under the updated ECGLS norms, state-owned banks will issue healthcare business loans for the construction of oxygen plants. Earlier in the day, the Finance Ministry stated that under ECLGS 4.0, hospitals and nursing homes will be able to get loans of up to Rs 2 crore, limited at 7.5 percent, to build up oxygen plants, guaranteed by the NCGTC's 100 percent guarantee cover.
Business loans for healthcare facilities
Business loans for healthcare establishments have also been made available by banks. Firms in metro cities and makers of healthcare items such as vaccines and ventilators will each be given up to Rs 100 crore to set up/expand healthcare infrastructure. Firms in Tier 1 and metropolitan centers can get loans worth up to 20 crores, while those in Tier II to Tier IV can get loans worth up to 10 crores. The loan is for a period of ten years.