Monday, October 12, 2020

The COVID-19 personal loan scheme


The Covid-19 pandemic has already had an impact on many sectors of the country. During the past six months, the economy's graph has shifted downwards with the employment rate constantly falling too. It has impacted many business and financial institutions as well, whether it is the public sector or private both suffered the losses. 

Many ways were introduced to the people so the business and the general public won’t suffer much and the country could be protected from the hit. The government provided a moratorium by which for at least two months people didn’t have to pay the amount of debt to banks, but after 31st May 2020, they resumed the tenure period to get back on track. It was extended for a  further period of three months but led to additional stress on the financial organizations. 

Offered Schemes

Many banks are offering lower personal loan interest rates, i.e. 7% to 10%, reducing it from 12% to 20% interest rate. Depending on the credit score people will get the amount or rate from the bank when it comes to availing of a personal loan. Having a higher interest in the personal loan was the most critical question to be asked by the customer from the bank. Many banks offer lower amounts to those who have an excellent CIBIL score.

But to avail of that COVID-19 personal loan scheme, you should have good records. Having any default during the last 30 days of payment can affect your credit score as well. City Union Bank Personal Loan is extended at an interest rate of 7.20%, which can vary from person to person.

Banks have already offered an EMI moratorium for 2 to 3 months on all outstanding loans from 1st March 2020 to 31 May 2020, which was later extended as well and which includes a personal loan scheme too. But the real benefit is for those who kept paying the debt amount to the bank even between the lockdown because those who didn’t pay will have to pay a little extra amount of interest for being fair with those who kept paying.

Since the government is offering many relaxations and filing affidavits to the supreme court so that burden will be less on the shoulder of the customer, paying debt is what people think before spending their income on their personal needs so they can get rid of the loan that may affect their financial status.

If you are going for the new loan then the amount that the City Union Bank personal loan is offering is Rs. 5 Lakh or six times your last credit salary/pension because the demands are high for the personal loan. Repayment tenure will remain the same, but if you want to pay on an instant basis, then you should check your past track record in the bank like in the form of credit score and having no defaults too. A great way to pay your other loan is also by using a personal loan amount to pay that debt like for home loan, auto loan, etc. but make sure you are paying that existing loan amount efficiently. 


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