Banks have decided to provide unsecured personal loans to individuals to cover expenses related to Covid treatment. In addition, they will grant loans to improve the health infrastructure.
This is in view of the creation of a Covid loan book following the May 5 announcement by the Reserve Bank of India to provide banks with a £ 50,000 term liquidity facility to facilitate access to emergency services.
Individuals (salaries, non-salaries and retirees) are offered unsecured personal loans for Covid treatment of self and family members.
The minimum and maximum loan amount at a reduced rate and for a maximum period of five years is £ 25,000 and 5 lakh respectively.
Dinesh Khara, chairman of the State Bank of India, said his bank would charge 8.50 percent interest on such loans.
The pandemic cuts off 75 percent of the income of the ultra-poor
The banks will provide healthcare loans to hospitals and nursing homes to build oxygen facilities and receive up to £ 2 billion of electricity per company at a rate of 7.50 percent for a maximum period of five years.
The loans are made under the government’s ECLGS (Emergency Credit Line Guarantee Scheme) 4.0.
Business loans for healthcare facilities
Banks will provide business loans for healthcare facilities. The target group for such loans will be the ecosystem that deals with the construction / maintenance of the health infrastructure. Hospitals, nursing homes, clinics, diagnostic centers and pathology laboratories.
The purpose of the business loans, which are granted at a reduced interest rate and for a maximum period of 10 years, is to build / expand the health infrastructure and manufacture health products.
The number of loans on offer will be up to £ 100 billion in underground centers. up to £ 20 million in Tier I and urban centers; and up to £ 10 crore at Tier II through Tier VI centers.
Rajkiran Rai G, Chairman of the Indian Banks’ Association, underlined that the Covid loan book will receive a priority sector classification.
To encourage banks to provide new loans to a wide variety of ambulance companies, the RBI stated that they will be allowed to use their excess liquidity up to the size of the Covid loan book at an interest rate below the reverse repo window park That’s 40 basis points more than the reverse repo rate.