WHAT IS A PERSONAL LOAN?
A personal loan is nothing complex or difficult to understand, it is an amount that can be used by a person borrowed from a bank a money lender or any financial institution and can use that money for a variety of purposes. For example, a person may use a personal loan to pay for home renovations, consolidate debt, plan a dream wedding, or even for a vacation. Personal loans are offered by credit unions, different banks, and online money lenders too. The money that is borrowed in the form of a loan must be repaid in a fixed tenure of repayment and that too, with the rate of interest. Different banks and different money lenders offer different interest rates, and one can compare different banks online and then can select the best. Some banks or money lenders also may charge a processing fee to process the personal loan. For example, SBI Personal Loan has the lowest interest rates.
IMPORTANT THINGS TO KNOW ABOUT A PERSONAL LOAN: –
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Personal loans can be used for any purpose, and their use is not restricted like other loans.
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Personal loans can, no doubt, cover a large number of personal expenses.
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A personal loan can be a secured loan, where the borrower needs to deposit collateral or security to the bank, or can be an unsecured loan, where there is no need for any collateral.
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A personal loan can vary greatly in terms of the rate of interest, loan, processing fee, and repayment tenure.
CORONA KAVACH SCHEME IN PERSONAL LOAN:-
As we all know, the pandemic of coronavirus has affected each individual in the whole world, whether physically, mentally, or financially. Although, if you are a State Bank of India (SBI) customer, you do not have to worry much. This is because the customers of an SBI Bank can have a shield of financial assistance. This is because of the corona Kavach scheme.
The SBI Bank, which is one of the largest public-sector lenders in the country has recently tweeted from its official Twitter handle assuring financial aid to its customers. It said that it will introduce the KAVACH personal loan scheme; as the country battles this deadly virus, SBI will provide financial aid to the customers and their families for the treatment of coronavirus.
Clients of the State Bank of India ought to be aware that the KAVACH Personal Loan program is available for the treatment of the coronavirus at the lowest rate of interest, which is 8.50% per annum. Also, a person who is a customer of the State Bank of India who wants to avail of the loan has to keep certain things in mind, which are as follows: –
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This Kavach program allows for a maximum loan sum of Rs. 5 lakh.
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The loan repayment should be done within 60 months, which will include three months of the moratorium.
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The person has to present the COVID-19 positive report for availing of this loan.
According to the State Bank of India website, one must note that the main purpose of this loan is to treat the coronavirus of self or a family member who are positive on or after 1st April 2021. Also, the target group for this loan includes salaried individuals, non-salaried individuals, and pensioners who are the customers of the SBI bank.
The customer of the SBI Bank can avail of the loan through both methods – online and offline. A person can either visit the nearest branch of the State Bank of India and apply for this loan, or he can apply online through the digital channel. If a person wants to know more about the Kavach scheme, he/she can log in to the official website of the State Bank of India or can call on the number – 1800 11 2211. The amount of the EMI can be calculated with the help of an EMI Calculator for the Personal Loan.
