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Coronavirus crisis: Banks offer COVID-19 specific loans, but should you take them?

In order to help people tide over the cash crunch during coronavirus pandemic, banks such as Bank of Baroda, Punjab National Bank, Bank of Maharashtra and Bank of India have launched new personal loan schemes. These loans come with relaxed norms for customers.

Here`s everything you need to know about these loans:

Who can avail these loans?

COVID-19 specific loans are primarily offered to existing customers requiring emergency funds to tackle cash flow disruptions, according to experts.

Consumers facing liquidity related issues due to the lockdown can consider them.

These loans come with lower interest rates than regular personal loans and may also come with a limited version of moratorium, according to Naveen Kukreja- chief executive officer and co-founder, Paisabazaar.

Banks, on an average, are offering an interest rate of up to 15 percent on these loans.

“Typically, personal loans have an interest rate of 18 percent, which can go as high as 24 percent. Hence, these types of loans may ease out the liquidity crunch in the short run,’” explains Hemant Sood, managing director of Findoc, Financial Services Group.

Source- Coronavirus crisis: Banks offer COVID-19 specific loans, but should you take them?