The outbreak of deadly Coronavirus disease (COVID-19) has shaken the entire world!
According to the World Health Organisation (WHO), most people infected with the Coronavirus will have mild to moderate respiratory illness and recover without any special treatment. However, older people and people with underlying medical problems (including cardiovascular disease, chronic respiratory disease, diabetes, and cancer) are more prone to develop serious illness.
As of today, i.e., 27 March 2020, there are total 536,478 Coronavirus cases around the world and the death toll has reached 24,114.
Currently, there are no vaccines or treatments for COVID-19. However, many clinical trials are going on for evaluating potential treatments.
Till the time there is a proper solution for this deadly virus, many countries, including India, are going through a lockdown situation.
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Depending on the recent development in India, Prime Minister Narendra Modi has declared a 21 days lockdown period in the country due to which people are stuck in their house.
During situations like these, it’s natural to fall short of funds for an emergency. If you too are stuck in lockdown and require funds for your emergency needs, you can apply for an Emergency Loan through MyMoneyMantra to get instant approval.
Here’s the list of banks that are currently offering Covid 19 Loan at relaxed norms:
Bajaj Finserv offers a Personal Loan with 45% lower EMI. You can get instant approvalwith minimal documentation, and the loan application process is complete digital. You can get the fund transferred to your account within 24 hours after loan approval.
Purpose | A medical emergency, education, renovation, marriage, etc. |
Loan amount | Up to Rs. 25 Lakhs |
Repayment tenure | 12 to 60 months |
Rate of interest | 12.99% p.a. onwards |
Processing fee | Up to 4.13% of the loan amount + applicable taxes |
MoneyTap gives you access to emergency funds anytime, anywhere, with its paperless personal loan.It has a stress-free repayment process, which helps the customers to access emergency funds with ease. One can opt for a loan repayment tenure ranging from 2 months to 3 years, depending upon the loan amount borrowed. One can easily manage fund transfers, credits, and repayments of the loan with MoneyTap’s smartphone app.
Purpose | Medical, education, debt consolidation, home renovation, marriage, purchase of consumer durables, two-wheeler/used car purchase, etc. |
Loan amount | Rs. 3,000 to Rs. 5 Lakhs |
Repayment tenure | Up to 3 years |
Rate of interest | 13% to 18% p.a. |
Processing fee |
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To calm the dwindling condition of the stock market and to help liquidity flow in the economy, the Reserve Bank of India (RBI) has cut key policy rates today, i.e.,on 27.03.2020.
This rate cut by RBI has come after central banks across the world have announced rate cuts to revive a coronavirus-related recession.This rate cut will ease the burden of equity investors and will reduce EMIs for borrowers.
The RBI has cut the repo rate and reserve repo rate by 75 basis points (bps) and 90 bps, respectively(100 bps = 1%). The current repo rate is 4.4%, and the reserve repo rate is 4%.
The unexpected rate cut will reduce equated monthly instalments (EMIs) of existing borrowers and will make it cheaper for new borrowers to take loans.
Many banks have also announced emergency credit lines for customers to bring liquidity relief during COVID-19 lockdown. Below are the details for the same:
State Bank of India(SBI) has introduced a limited-period scheme, COVID Emergency Credit Line (CELC) for Micro, Small and Medium Enterprises (MSMEs).Under theCELC facility, borrowers can avail up to or 10% of the existing fund-based working capital limits at reduced interest ratesfor a limited period.
This additional liquidity facility will provide funds up to Rs. 200 crores and will be available till 30 June, 2020. Loans will be SBI Offered at an interest rate of 7.25% and will have repayment tenure of 12 months.
Union Bank of India has also introduced a similar scheme for all its existing customers, calledCovid Emergency Line of Credit (CELC). The scheme provides additional credit of up to 10% of the existing working capital limit of corporate borrowers at reduced interest rates. The Loan can be repaid in 12 monthly instalments. The scheme will help to tackle liquidity issues.
Bank of India (BOI) has launched special loans across its MSME, Corporate, and Retail segments,for people affected by COVID.The corporate loan product offered by BOI is namedas COVID Emergency Support Scheme (CESS 2020) and the personal loan product is named as COVID19 Personal Loan (CPL). The loan is valid up to 30 June 2020.
Bank of Baroda (BOB) has launched a Baroda Covid Emergency Credit Line (BCECL), which provides additional funds of up to 10% of the sanctioned limit. The rate of interest for corporate borrowers will be a 1-year marginal cost of fund-based lending rate (MCLR) of 8.15% without the standard premium. Bank of Baroda Personal Loan Rate of Interest for MSMEs will be at the Baroda Repo Linked Lending Rate (BRLLR) of 8%.
Indian Bank has also introducedthe following 5 special emergency loans for its customers, includingcorporates, MSMEs, retail borrowers, pensioners, and self help groups (SHG).
An emergency loan is a personal loan facility that helps you avail cash in emergency situations, like lockdown during Coronavirus. These loans are required right away to fund unexpected payments and other expenses.
Eligibility criteria for anemergency loan may differ from bank to bank. The common criteria by most lenders are:
The documents checklist includes:
You can apply for an emergency loan through the website or mobile app of the loan provider or through MyMoneyMantra.com. You can also call the lender to place the request for a loan.
Benefits of emergency loans
These loans have the following benefits:
Emergency loans are usuallyprovided in the form of unsecured personal loans, credit card cash advance, payday loans, or pawn shop loans. The loan amount can be deposited directly into your bank account in a day or two post approval of your application and verification of your documents, depending on the lender.
If all the documents submitted by you are accurate, you can get an emergency loan disbursed in your account with 24 hours.
Yes, you can get an emergency loan even with a bad credit score, but your options will be limited. With low credit scores (below 750), you will have to pay relatively high interest rates on loans.
Yes, it is possible to get awithout income proof, depending on the loan approval process of the lender. A few lenders might make PAN card submission mandatory.Banks like Citibank offers personal loans of up to Rs. 30 lakhswithin 48 hours, without any documentation, such as income proof and address proof, if your residence and workplace address are updated in the Citibank account.
Some lenders may offer a loan without checking your credit score. However, you must show the lender that you have a bank account and regular income. Each lender has different set of requirements.
Also Read : No Home Loan, Personal Loan, Corporate Loan EMIs for three Months; Borrowing Rate cut by 75 bps
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