Public sector banks in India have recently announced various support measures and launch of new loan products to mitigate the impact of COVID pandemic.
- Three new loan products were jointly announced by The Indian Banks Association (IBA) and State Bank of India (SBI) in Mumbai on 30 May 2021.
- These are based on various measures announced by the Reserve Bank of India (RBI) and the Government of India (GoI).
- Apart from individual loan for treatment, the two other loans are:
- Healthcare Business Loan of up to 2 crore rupees. Healthcare business loans will be provided to set up oxygen plants under Emergency Credit Line Guarantee Scheme (ECGLS).
- Business loans for Healthcare Facilities of up to 100 Crore rupees. Loan for Healthcare Facilities will be provided to set up or expand healthcare infrastructure and to healthcare products manufacturers.
- The measures are designed to provide fresh lending support to vaccine manufacturers, hospitals or dispensaries, pathology labs, manufacturers and suppliers of Oxygen, Ventilators, importers of vaccines and Covid related drugs logistics firms and patients for treatment.
- PSBs would provide unsecured loans of up to 5 lakh rupees to individuals.
- Loan can be utilized to meet their and family members’ treatment cost.
- IBA and SBI announced that all the salaried, non-salaried and pensioners’ individuals can get an unsecured personal loan from ₹ 25,000 to ₹ 5 lakh to look after COVID-19 treatment.
- Repayment tenure is 5 years.
- SBI will charge interest of 8.5% per annum and other banks can also decide their interest rate.