State Bank of India (SBI) has initiated an emergency loan scheme for its customers amid the nationwide lockdown to curb the spread of COVID-19. It allows bank account holders of the nation's largest bank to apply for the loan on its YONO App and start paying EMI on the loan after six months.
The loan scheme comes as an aid to SBI customers that are facing a cash crunch and cannot afford to immediately start repaying either.
Interest rate on the SBI emergency loan
This loan is being offered at 10.5 percent interest rate, which is comparatively less than usual personal loans.
To check the eligibility to avail the SBI Emergency Loan, you can SMS "PAPL XXXX" (last four digits of SBI account number) to 567676 from your registered mobile number.
The response on your eligibility will also be made over text.
Loan amount and tenure
According to the SBI YONO App, one can get up to Rs 5 lakh as a loan under the facility and the application will be processed within 45 minutes.
EMIs for these loans will begin after six months, the public sector mentioned on the app.
"SBI EMI for this emergency loan will begin after six months when the loan borrower will have some breathing space and coronavirus lockdown impact on one's income has reduced," it said.
How to Apply for SBI Emergency Loan?
- If you do not already have the app, download YONO SBI on your smartphone.
- Click on 'Pre-approved Loan' option over the app.
- Select tenure and loan amount.
- An OTP (one-time-password) will be sent to the registered mobile number for verification. Enter and submit it over the app.
- The loan amount will be credited to your SBI savings account after it is processed almost immediately.