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What are Covid-19 personal loans?

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Last Updated: Apr 27, 2020, 11.32 AM IST
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Summary The interest rate on a COVID loan is lower than a personal loan and can vary from 8%-15% per annum. The loan term varies from 6 months to 5 years.

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Maximum amount offered for this loan is Rs 2.5-5 lakh depending upon the monthly salary of the client
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1. This is a type of personal loan offered by banks and NBFCs for the specific purpose of tiding over the liquidity crunch during the time of the Covid pandemic.

2. It is being offered to existing salary account holders and home loan customers with a high credit score.

3. Maximum amount offered for this loan is Rs 2.5-5 lakh depending upon the monthly salary of the client and existing loan value.

4. The interest rate on these loans are lower than personal loans and vary from 8%-15% per annum. The loan term varies from 6 months to 5 years.

5. These loans don’t carry prepayment fee and have low or no processing fees.

(Content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)

(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)

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