A Personal Loan is a type of loan which is unsecured wherein you don’t need to pledge collateral to receive the funds. Availing one is easy – you can apply online for the Personal Loan and you can use the money for a variety of purposes. Personal loans are often offered by banks, credit unions, or online lenders. The money you borrow must be repaid over time, typically with interest. Some lenders may also charge fees for personal loans. But one of the oldest commercial banks in India, that is, State Bank of India or widely known as State Bank of India (SBI), being the largest bank in India and also a public sector bank in India is offering Personal Loan to people in need of money at lower rates of interest.
As per the State Bank of India (SBI) Chairman’s statement, stating the bank will be providing unsecured personal loans to COVID- 19 infected families during the pandemic who may not be having the required amount of money at the right time. He further stated that not only the State Bank of India (SBI) but also other public sector banks will be providing Personal Loans to required citizens to help them out with the financial difficulty without any kind of security or collateral.
State Bank of India (SBI) will be providing personal loans of the amount ranging from Rs 25,000 to Rs 5,00,000 with an interest rate of 8.5 percent. The interest rates may vary from bank to bank based on their particular bank’s decision. These loans are being provided under the Emergency Personal Loan 4.0 (Emergency Credit Line Guarantee Scheme (ECLGS)). This scheme is being run by the State Bank of India (SBI) and other public sector banks keeping in view the poor and middle-class people who are unable to arrange for finance for hospital expenses of their family members for COVID- 19 treatment.
Due to the ongoing COVID- 19 pandemic situation throughout the country, many individuals have lost their jobs and most of them are unable to find one as the job market is too low in the country and many businesses have also incurred huge losses because of which majority of the population are facing financial problems in paying heavy hospital bills. In order to help out such businesses in losses and also those individuals facing money problems, the government, State Bank of India (SBI), and other public sector banks took this step.
What are the features of the new State Bank of India (State Bank of India (SBI)) Personal Loan?
Features of State Bank of India (SBI) Personal loans are as follows:
- Low-interest rates (8.5% and interest rate keep on varying based on daily reducing balance).
- Lower processing charges
- No hidden cost or any kind of administrative charges
- Minimum documentation (which most of us prefer as a lesser number of documents help people get loans easily at times of emergency and it can even be registered through online modes which is through Net Banking).
- Customers will not have to face prepayment penalties if you prepay your loan reducing your interest burden and optimally utilizing your surplus funds this way.
- The loan amounts range from Rs 25,000 to Rs 5 lakh for a tenure of up to 5 years at concessional rates of interest (8.5%) for individuals for COVID- 119 treatment. Personal Loans are the best solution for such emergency medical requirements.
COVID 19 has been a harsh and rough period for many people They can avail themselves of the safest and one of cheapest loans through the State Bank of India.