Loans for the Coronavirus Crisis

Looking for a loan to fight the COVID-19 downturn?

You have landed at the right place.

This page has all the information you need on COVID-19 loan schemes offered by Indian banks.

Financial Schemes for the Coronavirus (COVID-19) Crisis

The coronavirus pandemic (SARS-CoV-2), simply known as COVID-19, has badly affected all aspects of life across the whole world. The intensity with which it spread from Wuhan (China) to most countries in the world shocked most of us. Majority of countries were not expecting a microscopic organism to bring them to their knees. That it has says a lot about where our priorities were and where they should lie. It still seems like a never-ending nightmare to many of us.

It will not be an overstatement to say that COVID-19 has changed the world as we know it. Things will never be the same. While the world is grappling with the life and death situation, a financial crisis is creeping upon us too. Most of us can sense it but no one can imagine what it will actually be like once the lockdowns are over.

Sensing the financial uncertainties that await us in the future, Indian banks have drafted some measures keeping in with the guidelines of the Reserve Bank of India (RBI). These include:

3-Month Moratorium on Loans

In addition to other measures for countering the effect of COVID-19 on the Indian economy, RBI reached out to banks and Non-Banking Finance Companies (NBFCs) to suggest offering a 3-month moratorium (from 1st March 2020 to 31st May 2020) to existing borrowers on term loans.

Even though RBI has stressed the need to make it a default option right now and only remove it at the request of the borrower, most banks are offering it as a choice to the borrowers.

They have to get in touch with the bank and request the 3-month moratorium. The interest will accrue during the moratorium period but will give a respite to the customers who cannot pay the loan EMIs. This deferment of payment for three months will also not affect the credit score of the borrower. The 3-month moratorium is applicable on home loans, personal loans, education loans, auto loans, credit card dues, working capital loans, etc.

Short-term COVID-19 Business Loans

Lockdowns have brought many small and large businesses in different sectors to a complete standstill. Even though it was a necessary measure to arrest the growth of this fast-spreading virus, there is no denying the fact that it has come at a huge expense. Therefore, Indian banks and other lending institutions have created special emergency credit schemes for businesses of all sizes to help them meet their working capital needs. This will help these businesses get financial assistance to stand back up and resume normal business operations.

Short-term COVID-19 Personal Loans

Given the worsening condition of the global economy, not just businesses but retail customers will also need financial assistance in the coming months for various needs. Indian banks have come up with special emergency loan schemes to help self-employed and salaried employees meet their financial needs by availing short-term personal loans. These loans can only be availed until 30th June 2020 and the repayment period for most of these loans is 12 to 24 months.

COVID-19 Loans from Indian Banks

We give you a brief intro to each COVID-19 loan offered by Indian banks below.

We give you a brief introduction to each of these COVID loans below. In addition, you have the option to
click further and read in detail about each loan (the link takes you to another page on our website). This
specific page has been specifically designed so that you can get all the information on COVID-19 loans
offered by each bank in an uncluttered and easy-to-read format.

Bank of Baroda Personal Loan COVID-19 (for Retail Customers)

Bank of Baroda offers a COVID-19 loan to its retails customers. Bank of Baroda customers with a minimum 6-month relationship with the bank can avail this loan. This short-term loan scheme is only in force up to 30th June 2020.

Features of Baroda Personal Loan COVID-19

Why this Loan?

  • The Bank of Baroda Personal Loan COVID-19 is designed to help borrowers deal with the liquidity mismatch due to COVID-19
  • The loan must be repaid within 5 years with a maximum 3-month moratorium period
  • The maximum loan amount sanctioned under this loan scheme is Rs. 5 lakh
  • There are no prepayment charges for this loan

Baroda COVID-19 Emergency Credit Line (for Corporate and MSME Customers)

The Baroda COVID-19 Emergency Credit Line scheme helps existing BoB corporate and MSME borrowers get some relief from the impact of COVID-19 on their finances.

Features of Baroda COVID-19 Emergency Credit Line (BCECL)

Why this Loan?

  • Bank of Baroda sanctions up to 10% of the existing Fund Based Working Capital (FBWC) Limits subject to a maximum of Rs. 200 crore to its corporate and MSME borrowers under this loan scheme
  • The total repayment period for this loan to be 18 months. 15% of the loan amount must be repaid within the first 6 months of the repayment period and the balance of 85% of the loan amount must be repaid within 12 months
  • This is a secured loan and at least 80% of the loan should be secured with the value of stocks and receivables

Bank of India COVID-19 Personal Loan (for Retail Customers)

Bank of India (BOI) offers a COVID-19 loan to its retail customers drawing salary through the bank for at least one year, housing loan customers and personal loan customers. The maximum loan amount sanctioned under this loan scheme is capped at Rs. 5 lakh and depends on the monthly income of the borrower.

Features of Bank of India COVID-19 Personal Loan

Why this Loan?

  • The Bank of India Personal Loan COVID-19 is designed to help borrowers deal with the liquidity mismatch due to COVID-19. BOI salary account holders with a minimum of a 1-year relationship with the bank are eligible for this loan
  • Existing home loan and personal loan borrowers are also eligible for this loan provided that the account has never slipped in SMA 01 or SMA 02 category till 26th March 2020
  • The loan must be repaid within 3 years with a maximum 6-month moratorium period

Bank of India (BOI) COVID-19 Pensioner Loan (COPL) for Retired Customers

Bank of India offers a COVID-19 pensioner loan to regular pensioners, family pensioners, BOI retired employees (other than dismissed staff) and pensioners/family pensioners drawing pension through Treasury/Defence Pension Disbursing Office (DPDO) credited to Bank of India savings account.

Features of Bank of India COVID-19 Personal Loan (CPL)

Why this Loan?

  • The loan amount sanctioned under this loan scheme depends on the last drawn pension of the borrower. The maximum loan amount sanctioned under the Bank of India COVID-19 Pensioner Loan is Rs. 2.5 lakh for regular pensioners and Rs. 75,000 for family pensioners and Rs. 1 lakh for pensioners getting a pension through Treasury/DPDO
  • This demand loan is valid up to 30th June 2020

Bank of India COVID Emergency Support Scheme 2020 (CESS 2020) for Corporate and MSME Customers

This demand loan helps corporate and MSME customers of Bank in India get some relief from the financial impact of COVID-19. This scheme is in force up to 30th June 2020.

Features of Bank of India COVID Emergency Support Scheme 2020 (CESS 2020)

Why this Loan?

  • BOI sanctions up to 20% of the existing Working Capital (WC) Limits last sanctioned subject to a maximum of Rs. 200 crore per borrower under the Bank of India COVID-19 Emergency Support Scheme
  • This loan must be repaid within 2 years including a 6-month moratorium
  • Only the existing BOI Corporate and MSME borrowers enjoying working capital limits with the bank are eligible for this loan provided that the account has never slipped in SMA 01 or SMA 02 category

Bank of Maharashtra Personal Loan Scheme COVID-19 for Retail Customers

Bank of Maharashtra offers a COVID-19 loan to its home loan borrowers – where security charge is completely in favour of the bank, the moratorium is complete and the repayment has started – to help them meet their personal expenses. Existing home loan borrowers who have also availed a personal loan are also eligible. This term loan is valid up to 30th June 2020.

Features of Bank of Maharashtra Emergency Credit Line – Personal Loan Scheme COVID-19

Why this Loan?

  • The maximum loan amount sanctioned under the Bank of Maharashtra Personal Loan Scheme COVID-19 is up to 10 times the latest monthly gross salary income for salaried customers and 60% of the latest annual income based on the latest ITR for non-salaried borrowers subject to a maximum of Rs. 3 lakh
  • This loan must be repaid within 3 years including a moratorium period of 6-months
  • This is a clean loan

Bank of Maharashtra Ad-Hoc Line of Credit COVID-19 (for Businesses)

This loan helps businesses in India get some relief from the impact of COVID-19 on their finances. Existing bank customers who have availed the Bank of Maharashtra Credit Plus scheme are eligible to avail this scheme.

Features of Bank of Maharashtra Ad-Hoc Line of Credit COVID-19

Why this Loan?

  • The Bank of Maharashtra Ad-Hoc Line of Credit COVID-19 is designed to help affected businesses meet the liquidity mismatch arising out of COVID-19 in the short run. The bank sanctions up to 10% of the existing fund-based working capital credit facilities or Rs. 50 crore, whichever is lower
  • This short-term loan scheme is only in force up to 30th June 2020
  • There are no prepayment charges for this loan

Canara Bank Credit Support to COVID-19 Affected Customers (for Retail Customers)

This loan helps retail customers of Canara Bank get some relief from the negative effects of COVID-19 on their finances and meet their personal needs. This short-term loan scheme is only in force up to 30th June 2020.

Features of Canara Credit Support (CCS) to COVID-19 Affected Customers

Why this Loan?

  • As of May 2020, the details such as loan amount, interest rate, repayment period, etc. pertaining to this loan are not available on the bank’s website. We suggest talking to a bank representative to get these details

Canara Bank Credit Support COVID-19 (for Corporate and MSME Customers)

This loan helps corporate as well as MSME customers of Canara Bank get some relief from the effect of COVID-19 on their finances. This short-term loan scheme is only in force up to 30th June 2020.

Features of Canara Credit Support (CCS) to COVID-19 Affected Customers

Why this Loan?

  • The Canara Bank Credit Support (CCS) to COVID-19 Affected Customers scheme is designed to help affected businesses and retail customers of Canara Bank get the required financial assistance arising as aftereffects of COVID-19
  • The bank sanctions 10% to 35% of the existing working capital loan up to a maximum of Rs. 150 crore
  • No additional security is required to avail this loan

Central Bank of India Cent-COVID-19-Sahayata (for Businesses)

This loan helps businesses in India get some relief from the impact of COVID-19 on their finances. Existing Central Bank of India customers are eligible to avail this scheme. This short-term loan scheme is only in force up to 30th June 2020.

Features of Central Bank of India Cent-COVID-19-Sahayata

Why this Loan?

  • The Central Bank of India Cent COVID-19 Sahayata is designed as a short-term loan to help affected businesses get some relief from the impact of COVID-19 on their finances
  • The bank sanctions up to 10% of the existing fund-based working capital credit facilities or Rs. 50 crore, whichever is lower
  • This loan must be repaid within 2 years including a moratorium period of 6 months from the date of the first disbursement
  • There are no prepayment charges for this loan

Central Bank of India Special Loan Scheme for Self-Help Groups to Overcome COVID-19 (for Self-Help Groups)

This loan helps Self-Help Group borrowers to get funds from the Central Bank of India to face the financial crisis arising out of COVID-19. SHGs directly or indirectly affected by COVID-19 because of job loss, business loss, income loss, etc. arising out of the lockdown and related reasons are eligible for this loan. This short-term loan scheme is only in force up to 30th September 2020.

Features of Special Loan Scheme for SHGs to Overcome COVID-19

Why this Loan?

  • Central Bank of India COVID-19 SHG Scheme is a need-based loan and the maximum loan amount is capped at Rs. 1 lakh per borrower and Rs. 10 lakh for the whole group
  • The loan must be repaid within 36 months including a moratorium period of 6 months from the date of the first disbursement
  • This is a collateral-free loan

Indian Bank IND-COVID Emergency Salary Loan (for Retail Customers)

Indian Bank IND-COVID Emergency Salary Loan is designed to help salaried confirmed/permanent employees of government, semi-government and public sector units, reputed MNCs, etc. with at least 2 years of service maintaining a salary account with Indian Bank and home loan borrowers deal with the financial aftermath of COVID-19. This is a medium term loan.

Features of IND-COVID Emergency Salary Loan

Why this Loan?

  • The maximum loan amount sanctioned under this loan scheme is twenty times the latest monthly gross salary income subject to a maximum of Rs. 2 lakh
  • The loan must be repaid within 3 years including a moratorium period of 6-months
  • This is a collateral-free loan

Indian Bank IND-COVID Emergency Pension Loan (for Retired Customers)

Indian Bank offers this loan to regular pensioners, family pensioners and Indian Bank retired employees other than dismissed staff. The loan amount sanctioned under this loan scheme depends on the last drawn pension of the borrower. This loan scheme is valid up to 30th June 2020.

Features of Indian Bank COVID-19 Personal Loan (CPL)

Why this Loan?

  • The maximum loan amount sanctioned under the Indian Bank IND COVID Emergency Pension Loan scheme is fifteen times the last drawn pension of the borrower subject to a maximum of Rs. 2 lakh
  • The loan must be repaid within 3 years including a moratorium period of 3 months
  • The bank asks for immovable property as collateral security for this loan

Indian Bank IND-COVID Emergency Credit Line (for Corporate and Medium Enterprise Borrowers)

This loan helps businesses funds-based assistance to deal with the after-effects of COVID-19 on their finances. Existing Indian Bank customers with at least a 6-month relationship with the bank can avail this scheme. This short-term loan scheme is only in force up to 30th June 2020.

Features of Indian Bank IND-COVID Emergency Credit Line

Why this Loan?

  • The bank sanctions up to 10% of the existing fund-based working capital credit facilities up to Rs. 100 crore for corporate borrowers and Rs. 50 lakh for MSME borrowers under the Indian Bank IND-COVID Emergency Credit Line scheme
  • This loan must be repaid within 3 years including a moratorium period of 6 months from the date of first disbursement

Indian Bank IND-MSE COVID Emergency Loan (for Micro and Small Enterprise Borrowers)

This loan helps Micro and Small Enterprise customers get access to funds to deal with the ill-effects of novel coronavirus, simply known as COVID-19, on their finances. Existing business customers enjoying working capital limits with the bank are eligible for this loan provided that the account has never slipped in default. This short-term loan scheme is only in force up to 30th September 2020.

Features of IND-MSE COVID Emergency Loan

Why this Loan?

  • The bank sanctions up to 10% of the existing fund-based working capital credit facilities up to a maximum of Rs. 50 lakh under the Indian Bank IND-MSE COVID Emergency Loan scheme
  • Loans up to Rs. 25 lakh must be repaid within 3 years including a moratorium period of 6 months from the date of first disbursement. Loans above Rs. 25 lakh must be repaid within 5 years including a moratorium period of 6 months from the date of first disbursement

Indian Bank SHG COVID Sahaya Loan (for Self-Help Groups)

This loan helps Self-Help Group (SHG) borrowers to get funds from Indian Bank to face the financial crisis arising out of COVID-19. SHGs directly or indirectly affected by COVID-19 because of job loss, business loss, income loss, etc. arising out of the lockdown and related reasons are eligible for this loan. This short-term loan scheme is only in force up to 30th September 2020

Features of Indian Bank SHG COVID Sahaya Loan

Why this Loan?

  • This is a need-based loan and the maximum loan amount is capped at Rs. 5000 per borrower and Rs. 1 lakh for the whole group under the Indian Bank SHG COVID Sahay Loan
  • The loan must be repaid within 3 years including a moratorium period of 6 months from the date of first disbursement
  • This is a collateral-free loan

Indian Overseas Bank IOB-COVID 19 Support Scheme for SHGs (for Women Self-Help Groups)

This loan helps existing women Self-Help Group borrowers to get funds from Indian Overseas Bank to face the financial crisis arising out of COVID-19. Existing women SHG customers of Indian Overseas Bank with a satisfactory track record who have also availed at least two doses of credit from the bank are eligible for this loan. This short-term loan scheme is only in force up to 30th September 2020.

Features of SHG COVID Sahaya Loan

Why this Loan?

  • This is a need-based loan and the maximum loan amount is capped at Rs. 5000 per borrower and Rs. 1 lakh for the whole group under the Indian Overseas Bank IOB-COVID 19 Support Scheme for SHGs
  • The loan must be repaid within 3 years including a moratorium period of 6 months from the date of first disbursement
  • This is a collateral-free loan

Punjab National Bank PNB Sahyog COVID-19 (for Retail Customers)

Punjab National Bank offers the PNB Sahyog COVID-19loan to salaried employees of government, semi-government and other public sector units and reputed MNCs, nursing homes, hospitals, schools, colleges, etc. maintaining a salary account with Punjab National Bank. PNB home loan borrowers are also eligible for this loan. This medium-term loan scheme is only in force up to 30th June 2020.

Features of PNB Sahyog COVID-19 – Personal Loan Scheme for Public

Why this Loan?

  • The maximum loan amount sanctioned under the Punjab National Bank PNB Sahyog COVID-19 is Rs. 3 lakh for retail customers and Rs. 10 lakh for personal loan borrowers
  • The loan must be repaid within 3 years or before the borrower turns 60 years of age, whichever is earlier
  • This is a collateral-free loan. The bank does not ask for a third-party guarantee to sanction this loan

Punjab National Bank PNB Aabhar Rin COVID-19 (for Retired Customers)

Punjab National Bank offers this loan to regular pensioners, family pensioners and PNB retired employees other than dismissed staff drawing pension through the bank. The loan amount sanctioned under this loan scheme depends on the last drawn pension of the borrower.

Features of PNB Aabhar Rin COVID-19 – Personal Loan Scheme for Pensioners

Why this Loan?

  • The maximum loan amount sanctioned under the Punjab National Bank PNB Aabhar Rin COVID-19 is six times the last drawn pension of the borrower subject to a maximum of Rs. 2 lakh
  • The loan must be repaid within 3 years for borrowers who have already availed a PNB pension loan and 5 years for others
  • This loan scheme is valid up to 30th June 2020

Punjab National Bank COVID-19 Emergency Credit Line and Working Capital Re-assessment (for Corporate Customers)

This loan helps PNB corporate borrowers get access to funds to deal with the aftermath of COVID-19 on their finances. Existing Punjab National Bank customers whose account is under standard SMA 0 and SMA 1 rating can avail this scheme.

Features of COVID-19 Emergency Credit Line and Working Capital Re-assessment for Corporate Borrowers

Why this Loan?

Punjab National Bank PNB Stand-by Line of Credit for MSMEs to Fund Temporary Liquidity Mismatch

This loan helps Micro, Small and Medium Enterprise (MSME) customers get access to funds to deal with the temporary liquidity mismatch as an aftermath of novel coronavirus (COVID-19) including delayed realisation of receivables, receipts of GST Inputs Tax credit and other business requirements.

Features of PNB Stand-by Line of Credit (for MSME Borrowers)

Why this Loan?

Punjab National Bank SHG COVID Tatkal Sahayata Rin (for Self-Help Groups)

This loan helps Self-Help Group borrowers face the financial crisis arising out of COVID-19. SHGs directly or indirectly affected by COVID-19 because of job loss, business loss, income loss, etc. arising out of the lockdown and related reasons are eligible for this loan.

Features of SHG COVID Tatkal Sahayata Rin for Self-Help Groups

Why this Loan?

  • This is a need-based loan and the maximum loan amount is capped at Rs. 5000 per borrower and Rs. 1 lakh for the whole group under the Punjab National Bank SHG COVID Tatkal Sahayata Rin
  • The loan must be repaid within 3 years including a moratorium period of 6 months from the date of first disbursement
  • This is a collateral-free loan

UCO Bank UCO COVID-19 Emergency Credit Line (UCECL)

This loan helps businesses get access to funds to deal with the financial after-effects of the COVID-19 pandemic. Existing UCO Bank customers with at least a 6-month relationship with the bank are eligible for this scheme provided that the account has never slipped in SMA 02 category till the date of sanction.

Features of UCO COVID-19 Emergency Credit Line for Businesses

Why this Loan?

  • The bank sanctions up to 10% of the existing fund-based and non-fund based limits up to a maximum of Rs. 50 crore under the UCO COVID-19 Emergency Credit Line scheme
  • This loan must be repaid within 24 months including a moratorium period of 6 months from the date of first disbursement

UCO Bank – UCO Sahyog COVID-19 (for Self-Help Groups, Farmers and PMJDY Overdraft Account Holders)

This loan is targeted towards Farmers, Pradhan Mantri Jan Dhan Yojana (PMJDY) Overdraft (OD) account holders and Self-Help Group (SHG) borrowers to help them face the financial crisis arising out of COVID-19. This scheme is valid up to 30th September 2020.

Features of UCO Sahyog COVID-19

Why this Loan?

  • The maximum loan amount sanctioned under the UCO Sahyog COVID-19 is capped at Rs. 5000 per borrower and Rs. 1 lakh for the whole group for SHGs, 10% of the existing working capital limit up to Rs. 30,000 for farmers, and Rs. 1,000 over and above the existing maximum overdraft of Rs. 10,000 for PMJDY OD account holders
  • The loan must be repaid within 3 years including a moratorium period of 6 months from the date of first disbursement
  • No collateral security is required for the SHG and PMJDY borrowers. The bank asks for extension of charge of assets pledged to the bank for the existing loan sanctioned to farmers

Union Bank of India Union COVID-19 Personal Loan Scheme (for Retail Customers)

Thisloan is designed to help existing Union Bank of India salary account holders, pensioners drawing pension from the bank and other retail loan borrowers meet their personal or medical needs.

Features of Union COVID-19 Personal Loan Scheme (UCPLS)

Why this Loan?

  • The maximum loan amount sanctioned under the Union Bank of India COVID-19 Personal Loan Scheme is six times the last credit salary/pension or Rs. 5 lakh, whichever is lower
  • The loan must be repaid within 5 years including a moratorium of 3 months
  • This is a collateral-free loan for salary account holders and pensioners. However, the bank asks for extension of charge on existing collaterals for retail borrowers except personal and cash loan borrowers

Union Bank of India Emergency Line of Credit COVID-19 (for Businesses)

This Union Bank of India loan helps businesses in India get some relief from the impact of COVID-19 on their finances. Only the existing bank customers with at least a 6-month relationship with the bank are eligible for this scheme. This facility is extended as a term loan.

Features of Union Bank of India Emergency Line of Credit COVID-19

Why this Loan?

  • The Union Bank of India Emergency Line of Credit COVID-19 is designed as an ad-hoc line to credit to help affected businesses meet the liquidity mismatch arising out of COVID-19
  • The bank sanctions up to Rs. 50 crore under this scheme
  • The loan must be repaid within 2 years including a moratorium period of 6 months from the date of first disbursement
  • This short-term loan scheme is only in force up to 30th June 2020

Eligibility for COVID-19 Loans

The eligibility criteria for the COVID-19 loans may vary slightly from one bank to another. However, the common eligibility criteria of this loan for Indian Banks are:

  • The customers must have an existing relationship with the bank through loan variants
  • The loan must have been disbursed fully and the moratorium period completed
  • At least three instalments must have been paid towards the loan
  • The account should not have slipped in the default state until 29th February 2020

Interest Rate Applicable to COVID-19 Loans

The interest rate applicable to COVID-19 loans is directly related to the one-year Marginal Cost of Funds Based Lending Rate (MCLR) or Base Rate.

If you need more details about a particular COVID-19 loan scheme, please get in touch with your bank branch.