Covid treatment: banks offer unsecured loans up to 5 lakh

MUMBAI: Banks will offer unsecured off-the-shelf loans up to Rs 5 lakh to individuals for the treatment of Covid, and business loans up to Rs 100 crore for setting up health facilities.
The launch of the new programs was announced on Sunday by SBI Chairman Dinesh Khara and Association of Indian Banks Chairman Rajkiran Rai. Khara said SBI decided to price its unsecured loans at 8.5 percent.
Bankers also took stock of the restructuring offer made to small businesses under the program announced by the RBI earlier this month. Rai said that until April, banks saw no problem in the loan department. However, in May there was a drop in collections but it was too early to have any idea of ​​the number.

People seeking loan restructuring can apply on the bank’s website or manually submit the proposal.
The borrower and the bank will have to agree on a resolution plan within 30 days of the request and September 30 would be the last day to finalize the resolution plan.
Khara said public sector banks have formulated a model approach for restructuring loans to individuals, small businesses and MSMEs up to Rs 25 crore. He said banks would be proactive and reach out to eligible customers through bulk SMS messages and that the offer and acceptance would be generated and sent electronically.
Personal loans would be available to all individuals for the treatment of themselves or a family member. The minimum loan amount would be Rs 25,000 and the term would be a maximum of five years. The RBI had encouraged lenders to make such loans earlier this month by offering to refinance up to Rs 50,000 crore with priority sector status for these advances. While banks funded oxygen factories and vaccine manufacturers in May 2020, the standardized packages are expected to speed up disbursements.
Commercial loans would be available to anyone engaged in the construction and maintenance of health care infrastructure such as hospitals, nursing homes, clinics, diagnostic centers and pathology laboratories. It will be available for entirely new investments as well as for addition to existing capacity. The loan amount, which will last up to 10 years, will be Rs 100 crore for metropolitan centers, Rs 20 crore for level 1 and urban centers, and Rs 10 crore for small towns.


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