In order to counter the financial impact of the ongoing Covid 19 crisis on Indian citizens, including the salaried class, pensioners, MSMEs etc., the government has announced a slew of measures to make it easy for everyone to seek financial help during these difficult times. Let’s look at some of the options one can consider.
RBI has introduced a Covid-19 package as per which banks have decided to defer loan EMIs of borrowers by three months, starting April 2020. As per a communication sent out by many banking establishments including State Bank of India, customers have been informed about deferred EMIs on their vehicle loans, housing loans etc. by three months.
The deferment is expected to work automatically with banks not raising the demand for EMIs at all. The scheme can be availed by all borrowers who haven’t defaulted on their payments in the past. In case anyone is sent a SMS or email for loan EMI, they can always contact the respective bank and clarify the matter.
The government has also instructed all state-owned lenders to offer easy credit options to both corporate and individual borrowers. For instance, Indian Bank has launched 5 specially-created Covid-19 emergency loan plans for all kinds of customer-types including salaried class, pensioners, self-help groups to even large corporates.
Using these schemes, borrowers can get a quick salary loan of up to 20x their last drawn monthly salary (gross), up to a maximum of Rs. 2 lakh. Senior Citizens on the other hand can take emergency pension loans of up to 15 x the amount they receive as their monthly pension (capped at Rs. Lakh). These loan products are being offered with a 5-year tenure, at zero charge or concessional interest.
Instant loans have proven to be an extremely popular credit option amongst the millennials and youngsters of today. These are different from personal loans and are in the form of advanced rental loans, salary loans etc., disbursed immediately at the time of need. While these loans can be availed at any time, right now they seem to be the best option for people in need of some emergency funds.
While some lenders disburse the loan amount within 24 hours, some can credit it into your account the same day itself. Instant loans are normally meant for shorter time periods, to help meet short-term expenses. The entities offering them are normally digital lenders such as PaySense, MoneyTap, Qbera, EarlySalary etc. Please note, the offered loan amount is normally up to a specific percentage of the person’s salary. The tenure of the credit can range from 1 to 12 months.
What really sets instant loans apart is that they work as an excellent option for borrowers with poor or no credit score, who have already been refused loans by the banks. Anyone even with a credit score as low as 600 can make the cut and get himself/herself some emergency credit.
It’s very important to stay calm and composed regardless of the prison-like feeling everyone must be experiencing right now. Please remember, it’s not the end of the world yet. Whatever you do, don’t indulge in panic buying or hoarding. Buy only supplies which are absolutely necessary, ensuring that there’s enough for everyone else too.