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COVID-19 treatment: PSU banks offering personal loans up to Rs 5 lakh; check interest rates and other details

While the personal loan for treatment of the COVID-19 is available at cheaper rates, opt for them only if you are facing a temporary cash-flow problem.

June 01, 2021 / 06:14 PM IST
While the personal loan for treatment of the COVID-19 is available at cheaper rates, opt for them only if you are facing a temporary cash-flow problem.

While the personal loan for treatment of the COVID-19 is available at cheaper rates, opt for them only if you are facing a temporary cash-flow problem.

 
 
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Public sector banks are offering personal loans up to Rs 5 lakh that individuals can use for the COVID-19 treatment of self or family members.

India's largest lender State Bank of India (SBI) offers loans at an interest rate of 8.5 percent. The minimum loan amount is Rs 25,000, and the maximum tenure will be five years, according to Dinesh Khara, State Bank of India Chairman.

According to Union Bank of India's website, the interest rate will be 8.5 percent on such loans and the maximum tenure will be five years.

Canara Bank offers a similar Suraksha personal loan with the minimum and maximum amount of Rs 25,000 and Rs lakh, respectively. The Canara Suraksha scheme will also provide a six-month moratorium.

Due to coronavirus pandemic and cash crunch,  public sector banks had launched COVID-19 personal loans last year. Those loans were also available for existing customers and were priced aggressively – some as low as 7.2 percent.

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COVID-19 Vaccine

Frequently Asked Questions

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How does a vaccine work?

A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.

How many types of vaccines are there?

There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.

What does it take to develop a vaccine of this kind?

Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.

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If you are facing a temporary cash-flow problem, then only opt for personal loan for treatment of the COVID-19, which is available at cheaper rates. You can avoid them if there's uncertainty about cash-flows. It's best to avoid liabilities in the current environment. Instead of taking a new liability, it's better to liquidate an asset.
 Eligibility criteria for the loan by the bank

-Customers who are drawing salaries or pension through the bank for the past 12 months.

-Those who have taken a retail loan (home, vehicle, mortgage, personal and cash loan) from the bank.

-Non-salaried individuals who maintain a savings or current account with the bank and have been regularly filing income tax returns.
Moneycontrol News
first published: Jun 1, 2021 06:14 pm

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