Customers can now get an unsecured loan, also known as a Covid personal loan, from the State Bank of India (SBI) at low rates. The country's largest commercial bank made the decision, saying that SBI customers who want a credit facility for COVID-19 treatment for themselves or family members would be able to avail a Covid personal loan without putting up any security or collateral. SBI Chairman Dinesh Khara stated the credit line will be made accessible up to Rs 5 lakh under the Emergency Credit Line Guarantee Scheme (ECLGS) while declaring the loan for Covid treatment.
According to a recent update, Public Sector Banks (PSBs) have declared that they will grant unsecured loans of up to Rs 5 lakh to individuals to help them afford COVID-19 treatment for themselves and their families. This is one of three new loan options they introduced on Sunday to help vaccine suppliers, healthcare facilities, pathology laboratories, manufacturers and suppliers of oxygen, ventilators, and COVID-related pharmaceuticals logistics companies, and individuals having COVID-19. Individuals, including salaried, non-salaried, and retirees, can apply for unsecured personal loans ranging from Rs 25,000 to Rs 5 lakh to cover COVID-19 treatment, according to statements made at a joint press conference by the Indian Banks' Association (IBA) and State Bank of India (SBI).
The repayment period is 5 years, with an annual interest rate of around 8 per cent charged by SBI. Under the ECGLS, the PSBs have also proposed to grant up to Rs 2 crore in healthcare business loans to established hospitals and nursing homes for the installation of oxygen units and power backup systems. These loans have a 7.5 per cent interest rate cap and are supported by the National Credit Guarantee Trustee Company Ltd (NCGTC) under ECLGS 4.0, which was declared by the Department of Financial Services and the Government of India. The loan will be granted for a period of five years. Business loans for healthcare establishments have also been made available by banks.
Companies in metro cities and manufacturers of healthcare supplies such as vaccines and ventilators would each be given up to Rs.100 crore to set up or expand the healthcare system. Firms in Tier 1 and urban areas can get up to Rs 20 crore in loans, while those under Tier II to Tier IV can get up to Rs 10 crore. The loan is for a period of ten years. In addition, in order to assist MSMEs, the Indian government has announced changes to the ECLGS Scheme by strengthening its purview. ECLGS has been extended until September 30, 2021, and disbursement allowed until December 31, 2021.