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PSBs to Lend up to Rs 5 Lakh to Individuals for Covid-19 Treatment

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Public sector banks to lend up to ₹5 lakh

Indian Banks’ Association(IBA) and State Bank of India(SBI) announced that all Public Sector Banks (PSBs) will provide unsecured personal loans between Rs 25,000 to Rs 5 lakh to salaried, non-salaried and pensioners for COVID-19 treatment cost (to them and their family members).

  • The repayment tenure of those loans will be 5 years and SBI would charge interest of 8.5 percent per annum and other banks are made free to decide their interest rate.

Other Credit Facilities:

a.Healthcare Facilities Loan:

i.PSB will also provide loans for healthcare facilities, firms in Metro cities could avail upto Rs 100 crore to setup/expand healthcare infrastructure and to manufacturers vaccine and ventilators.

ii.Loans of up to Rs 20 crore could be availed by firms in Tier 1 and urban centres, and firms in Tier II to Tier IV could avail up to Rs 10 crore. For all categories, the loan tenure is about 10 years.

b.Loans under ECLGS:

i.As per the expansion of ECLGS (Emergency Credit Line Guarantee Scheme), PSBs will also offer healthcare business loans up to Rs 2 crore at 7.5 percent interest to hospitals for setting up oxygen plants under ECLGS 4.0. Click here to know more

ii.IBA chairman Rajkiran Rai stated that out of the 8.5 lakh eligible MSME firms only 60,000 had availed the facility through ECLGS IN 2020.

c.RBI Credit measures against COVID-19

In regard to Resolution Framework 2.0, Term Liquidity Facility of Rs 50,000 crores which was introduced by RBI amidst COVID-19 to Ease Access to Emergency Health Services, PSBs have formulated a Templated Approach for restructuring of loans. Click here to know more 

d.SBI chairman Dinesh Khara stated the availability of loans of upto Rs 200 crore for aviation companies to deal with COVID – 19 as per the government policy.

Recent Related News:

In May, 2021, SBI made a partnership with HyperVerge to obtain its technology called ‘Video KYC solution’ for onboarding customers online under COVID-19.

About Indian Banks’ Association(IBA):

Establishment – 1946
Headquarters – Mumbai, Maharashtra
Chief Executive – Shri Sunil Mehta

About State Bank of India(SBI):

Establishment – 1st July 1955
Chairman – Dinesh Kumar Khara
Headquarters – Mumbai, Maharashtra
Tagline – The Banker to Every Indian