State-Run Banks to Provide Personal Loans up to 5 Lakh for COVID Treatment

Individuals would be able to get unsecured personal loans of up to Rs 5 lakh from public sector banks to cover their Covid treatment costs.

The decision was announced jointly by the State Bank of India and the Indian Banks' Association in a news conference in the aftermath of the devastating second wave of Covid-19 (IBA).

According to a joint statement, PSBs will give "unsecured personal loans to individuals from Rs 25,000 to Rs 5 lakhs for salaried, non-salaried and pensioners for meeting Covid treatment."

It goes on to say that under the revised ECGLS norms, state-owned banks will issue healthcare business loans for the construction of oxygen plants. 

Earlier in the day, the Finance Ministry stated that under ECLGS 4.0, hospitals and nursing homes will be able to get loans of up to Rs 2 crore, limited at 7.5 percent, to build up oxygen plants, guaranteed by the NCGTC's 100 percent guarantee cover. 

Earlier in the day, the Finance Ministry announced that under ECLGS 4.0, hospitals and nursing homes will be able to borrow up to Rs 2 crore for the construction of oxygen plants, with interest rates capped to 7.5 percent and the NCGTC's 100 percent guarantee cover. 

"All the above schemes are being offered by PSBs at concessional interest rates and will form part of the Covid loan book," said the statement.

PSBs have developed a templated strategy for debt restructuring as part of the 'Resolution Framework 2.0.'

For the resolution of business loans, three categories have been established: loans of up to Rs 10 lakh, Rs 10 lakh to Rs 10 crore, and loans of more than Rs 10 crore.

In addition, when it comes to loans to individuals, PSBs have developed a strategic approach to ensure a smooth and efficient implementation. 

Also Read - In Class-Action Lawsuit, 11,000 Female Google Employees Sue the Company Over Pay Disparity

Also Watch - Assam Journos Feed Animals