How has lockdown impacted personal loans?

Because of COVID-19, there has been a downfall in the life of the people. Many have lost their employment and currently, their savings are also exhausted. Here personal loans can be a savior for you, but a tailored one. So the banking sector is coming with lots of innovative tailor-made ideas to take away the burden from your shoulders. In a pandemic, the loans have become more delicate and their demand has also increased. Try to be more cautious in opting for a loan in the ongoing pandemic. 

6 Things to consider while opting for a COVID-19 loan

Below is some consideration that an individual should follow while going for a COVID-19 loan:

1.  Exclusive kind of loans:-

In the ongoing pandemic, the banking sector has started lending a helping hand. Some banks/NBFCs have introduced exclusive loans because of the ongoing pandemic and the reason behind this is to offer support to the broken back of their clients. So opting for loans especially for COVID-19 can remove negative impacts from your life. You can go and checkout for Muthoot Finance Personal Loan.

2. The intent behind such loans:-

Generally, lenders provide a loan to an individual to overcome unexpected situations and COVID is one of those. Loans can help you to overcome the liquidity issues like lay off, salary cutoffs, etc. So if you are having financial issues in this pandemic, go for a COVID-19 loan.

3. Who can apply and avail?

COVID-19 loans have a very specific category for the applicants, as these loans are approved only to current salary account holders and the house loan customers with an ideal CIBIL score. Simply we can say that an individual should have a good credit history to avail of the loan.

4. Loan limitations:-

In this type of loan, the maximum amount offered by the financing sector is up to INR 5.0 lakhs. This lump sum will also depend upon your monthly income and the existing loan. You can also compute your personal loan eligibility criteria.

5. Interest rates and other fees:-

The interest rate of these loans is slightly lesser than the other loans, as it can vary from 8%-15% pa. The loan duration can range from 6 months to 60 months. You won’t have to pay any pre-payment fees for such types of loans.

6. Application process

A borrower can apply for a pandemic loan online as well as offline as per their availability. You will have to ask your bank directly to know more about the application process.

Nobody knows when this COVID is going to be over, so try to concentrate on your savings as much as you can. Don’t get reliable on loans as you can end up with a huge repayment burden on yourself. 

            Also Read:- I Need an Urgent Personal Loan But Have a Bad Credit Score