State-run banks to lend up to Rs 5 lakh for Covid treatment


New Delhi, May 30 (IANS): Public sector banks (PSB) will provide unsecured personal loans of up to Rs 5 lakh to individuals for meeting their expenses of Covid treatment.

The decision, which comes in the wake of the severe second wave of Covid-19, was announced jointly at a press conference by the State Bank of India and the Indian Banks' Association (IBA).

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

It further said that the state-owned banks will provide healthcare business loans for setting up oxygen plants under the revised ECGLS norms. The Finance Ministry earlier in the day announced that under ECLGS 4.0, loans of up to Rs 2 crore, capped at 7.5 per cent, would be given to hospitals, and nursing homes for setting up oxygen plants, backed by 100 per cent guarantee cover of the NCGTC.

They would also offer business loans for healthcare facilities up to Rs 100 crore to setup or expand healthcare infrastructure and to manufacturers of healthcare products.

"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.

In regard to the 'Resolution Framework 2.0', PSBs have formulated a templated approach for restructuring of loans.

Three categories have been formulated for the resolution of business loans -- loans of up to Rs 10 lakh, Rs 10 lakh to Rs 10 crore and those above Rs 10 crore.

Further, in terms of loans to individuals also, PSBs have come out with a strategic approach to have seamless implementation in effective manner.

 

  

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Comment on this article

  • Jossey Saldanha, Nallasopara

    Mon, May 31 2021

    I would prefer Rs. 15 Lacks ...

    DisAgree Agree [5] Reply Report Abuse

  • Sameer, Riyadh

    Mon, May 31 2021

    The person availing loan will die paying the interest on loan if he does not die due to Corona.

    DisAgree Agree [4] Reply Report Abuse

  • Krishna Dasa, Udupi,.

    Mon, May 31 2021

    COVID 19 is public health issue & public health expenses including treatment, vaccine and testing is the responsibility of Central ministry of Health, Department of public health Government of India and all expenses including treatment in Public & Private hospital, Public & private vaccination and Testing & tracing must be paid and reimbustred by Central Government Ministry of Health. People must demand it from Government.

    DisAgree Agree [4] Reply Report Abuse


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