4 Best PSU Banks With The Cheapest Interest Rates On COVID-19 Personal Loans

To cover the costs of Covid-19 treatment for self and families, major public-sector banks declared COVID-19 personal loans of up to Rs 5 lakh. These loans are available at low-interest rates to salaried, non-salaried, and pensioners with a tenure of 5 years and no processing fees. Borrowers who are tested Covid Positive on or after 01.04.2021 must provide a COVID-positive report to the bank in order for the loan amount to be sanctioned. So, if you want to get a personal loan for COVID-19 treatment, these are the top four government banks that are currently offering the lowest interest rates.

SBI KAVACH Personal Loan Scheme

Here are the features and benefits of KAVACH Personal Loan Scheme according to the official website of SBI:

• Minimum and maximum loan amount: Minimum: Rs. 25,000 & Maximum: Rs. 5 Lakhs as per eligibility.
• Reimbursement facility: Available through branch channel, Digital channel (Pre-approved through YONO).
• Loan disbursement: Credit to Salary/ Pension/ SB account of the customer
• CIC (CIBIL CV Score): As per Bank's internal policy
• Loan facility: Term Loan
• Target Group: Customers of the Bank such as Salaried, non-salaried as well as Pensioners
• Loan tenure: 60 months (including 3 months moratorium). Loan to be repaid in 57 EMIs, including interest charged during Moratorium.
• Rate on interest: 8.50% at present (minimum 100 bps lower than a similar unsecured product of the bank)
• Repayment mode: Standing Instruction (SI) on the Salary/ Pension/ SB/CA account.
• Processing fee: NIL
• Security: NIL
• Prepayment Penalty: NIL
• Foreclosure Charges: NIL

Punjab National Bank Sahyog RIN COVID - Personal Loan Scheme

This is a personal loan plan offered by Punjab National Bank for COVID treatment of self or family members starting on or after April 1, 2021. Here are the features and benefits of PNB Sahyog RIN COVID personal loan scheme according to the official website of the bank.

• Validity: The schemes will be valid till 31.03.2022.
• Eligibility: All Salaried (Govt. or Private) having salary account with us and drawing a regular salary for last 12 months.
• Nature Of Loan: Term Loan
• Loan amount: For Salaried: Six times of the average of the last 6 months salary credited in the account. (Salary to be verified from Statement of account). Maximum of Rs.3 Lakh. Note: Maximum ceiling of Loan amount per borrower under the Personal Loan Scheme is Rs10.00 Lakh (Rs15.00 lakh in case of Doctors), including fresh loan under PNB Personal Loan - PNB Sahyog COVID.
• Reimbursement facility: Up to 3 months
• Minimum Permissible Deductions: For gross monthly salary/income the maximum permissible deduction will be: Up to Rs.30000.00 and for above Rs. 30000.00: 65%.
• Income Criteria: Rs.15000.00 in Metro/ Urban center & Rs.10000.00 in Semi Urban/ Rural center.
• Loan Tenure: Maximum 60 months or remaining period of service, whichever is lower.(including doctors).
• Security/Guarantee: As per the extant guidelines of "Personal Loan Scheme for Salary persons - PNB Sahayog Rin.
• Rate Of Interest: RLLR + 1.70%
• CIC Score: 650 & above
• Processing & Documentation Charges: NIL

Bank of India COVID-19 Personal Loan

Following are the salient features of the product, according to the official website of Bank of India.

• Eligibility: Customers Drawing salary through the bank for more than 1 year, and all existing standard personal loans including housing loan customers.
• Loan amount: 3 times of last drawn gross salary; Maximum: Rs. 5.00 Lakhs (for salaried). 3 times of last drawn gross salary in case of salaried persons, maximum: Rs. 5.00 Lakhs and 3 times of monthly income based on the latest ITR in case of self-employed borrowers; Maximum: Rs. 5.00 Lakhs for existing housing loan/Personal customers.
• Rate of interest: RBLR floating with monthly rests (refer to the website for the latest rate of interest).
• Processing fee: NIL
• Repayment: 36 months including a moratorium period of 6 months.

Baroda Covid Personal Loan 2.0

According to the official website of Bank of Baroda, the following are the basic benefits of the Baroda COVID Personal Loan 2.0.

• Loan purpose: For covering COVID treatment expenses or temporary financial shortfalls caused by COVID- 19.
• Eligibility: Customers with home loans and loans against property with a minimum of 6 months of relationship with the bank. Limousine Loan with minimum 12 month's relationship subject to certain terms and conditions.
• Loan amount: Minimum loan amount Rs25,000 up to a limit of Rs 5 lakhs subject to 10% of the original sanctioned limit of linked home loan and 10% of the original sanctioned limit of linked LAP.
• Interest rate: 2.00% over BRLLR +SP, irrespective of CIBIL Score. But not lower than the ROI of the linked loan.
• Prepayment charges: NIL