Stuck in a Lockdown? Get a Personal Loan and be Ready for Financial Emergency!

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.

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 Personal Loan

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.

Bajaj Finserv Personal Loan Features:

EligibilityCriteria for Bajaj Finserv Personal Loan:

• Who can apply:Indian resident salaried individuals,employed with an MNC, public, or private company.
• Age:The age of the applicant must be between 23 and 55 years
• The applicant should meet the salary requirements of the lender based on their city of residence

MoneyTap Personal Loan

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.

MoneyTap Personal Loan Features:

Eligibility Criteria for MoneyTap Personal Loan

• Who can apply: Salaried individual/ government employee/ business owner/ self-employed professional (doctor, lawyer, CA, architect,shop owner, etc.).
• Age: The age of a borrower must be 23 years at the time of loan application and below 55 years at loan maturity.
• Income: Applicant must have a regular income on a monthly basis. The minimum monthly income of the borrower must be Rs. 20,000 per month or more.
• Locations where MoneyTap offers loan: Delhi,Gurgaon,Faridabad, Greater Noida, Ghaziabad,Dehradun,Ahmedabad, Bengaluru, Chennai,Bhopal, Bhubaneshwar, Bharuch, Ambala, Aurangabad, Anand, Coimbatore, Chandigarh, Erode, Gandhinagar, Guwahati, Guntur, Haridwar, Hyderabad, Indore, Jaipur, Jodhpur, Raipur, Rajkot, Kochi, Kolhapur, Kolkata, Lucknow, Mangalore, Mumbai, Pune, Navi Mumbai, Nagpur, Thane, Nashik, Panchkula, Mohali, Mysore,Salem, Secunderabad, Surat, Tirupati, Trichy, Visakhapatnam, Vadodara, Vijayawada.

Impact of RBI’s Rate Cut on Personal Loan

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

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

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

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.

• CESS 2020: Under this scheme, corporates are eligible for an additional fund of 20% of their existing working capital limit.

• CPL:Under this scheme, additional loans of up to 3 times of last drawn salary will be offered to personal loan borrowers who have accounts in BOI. Bank of India Personal Loan amount available is up to a maximum of Rs. 5 lakhs. Existing home loan customers of the bank can avail 25% of the remaining market value of the property as an additional emergency loan. The floating interest rate for these personal loans will be 8% with a monthly reset.

Bank of Baroda

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

Indian Bank has also introducedthe following 5 special emergency loans for its customers, includingcorporates, MSMEs, retail borrowers, pensioners, and self help groups (SHG).

• IND-Covid Emergency Credit Line (IBCECL): Under this scheme, additional funding of up to 10% of the working capital limits (fund-based as well asnon-fund based), with a maximum limit of Rs.100 crores, will be provided to the large corporates and medium enterprises that fall under the Standard Category. The repayment tenure will be up to 36 months with an initial moratorium of up to 6 months. The scheme will be offered at a fixed interest rate of 1-year MCLR andall other charges are waived.

• IND-MSE Covid Emergency Loan (INDMSE-CEL): The scheme will offeran additional funding of 10% of fund-basedworking capital limits, with a maximum limit of Rs.50 lakhs to all micro and small enterprises. The repaymenttenure is up to 60 months.

• IND-COVID Emergency Salary Loan: This scheme is offered to salaried employees for up to an amount equal to 20 times of their latest monthly gross salary,with a maximum of Rs. 2 lakhs. The loan will be offered at a concessional interest rate and all charges will be waived.Itwill help them meet their urgent medical and other expenses.

• IND COVIC- Emergency Pension Loan: Under this scheme, 15 times of monthly pension, subject to a maximum of Rs. 2 lakhs, will be offered to pensioners. The repayment tenure isup to 60 months. The loan will be offered at a concessional interest rate and all charges will be waived.

• SHG COVID SAHAYA LOAN: Currently, Indian Bank is servicing 1.68 lakh self help groups (SHGs)with more than 22 lakh women beneficiaries. Indian Bank has launched this loan to help them tide over the crisis. Under this scheme, each member can avail of a loan of Rs. 5,000 (Rs. 1 lakh per SHG). The loan has to be repaid in 36 months with 6 months moratorium period.

Emergency Loan -FAQs

✅ What is an emergency loan?

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.

✅ What are the eligibility criteria to get an emergency loan?

Eligibility criteria for anemergency loan may differ from bank to bank. The common criteria by most lenders are:

• Applicant should be an Indian resident
• Applicant can be salaried individuals, self-employed professionals, self-employed individuals,and business persons.
• The age of the applicant must beminimum 21 years when applying for the loan and maximum65 years on loan maturity.
• The applicant should meet the salary requirements of the lender based on their city of residence. Most lenders require you to have a minimum monthly income of Rs. 25,000 or above.

✅ Which documents are required to get an emergency loan?

The documents checklist includes:

• KYC documents, like Passport/ Voter’s Identity Card/ Driving Licence/ Aadhaar Card/ NREGA Card/PAN Card.
• Employee identity card
• Salary slips of the last 2 months
• Bank account statements of salary account for the last 3 months

✅ How to apply for an emergency loan?

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:

• Can be used for any personal, business, educational, or medical requirements
• Affordable interest rate
• Flexible repayment tenure
• No collateral required
• Easy to obtain
• Instant approval
• Paperless digital process
• Minimal or no documentation required

✅ How do I get an emergency loan?

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.

✅ How much time it takes to get disbursement of an emergency loan?

If all the documents submitted by you are accurate, you can get an emergency loan disbursed in your account with 24 hours.

✅ Can I get an emergency loan with bad credit?

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.

✅ Can I get a loan without income proof?

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.

✅ Can I get a loan without a credit check?

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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