Should You Go For COVID-19 Personal Loan ?

COVID-19 Personal Loan – Almost all the public sector banks are offering the COVID-19 Personal loan to their existing borrowers under salary, pension, home , MSME and Mortgage loans. Some of the big banks offering covid-19 personal loans include SBI, Canara Bank, Bank of Baroda (BoB), Punjab National Bank (PNB), Bank of India (BoI) , Union Bank of India, Indian Bank etc.

If you have a salary account or any existing regular loan in a public sector bank, you may be able to avail covid-19 personal loans. The ROI is much mower than the most other personal loans, it aims to help you tide over any temporary crash crunch you may be facing due to the pandemic.

Read more – COVID-19 Personal Loans By Banks – Check Your Eligibility Criteria

Though banks are offering the COVID-19 personal loan at the attractive interest rate the experts and the financial planners advise against taking any additional loan liability at this time. They argued that 

1. No one knows how the covid-19 situation will pan out ? It’s best to refrain from taking additional liability.
2. Taking a loan can give you a false sense of liquidity and make you spend more.
3.  Since the lockdown, the expenses of most individuals would be down. Most individuals would have some money in their bank account due to lower expenses. Use that diligently.

If you are facing a cash crunch, dig into your emergency funds or the money lying in your bank account instead of taking a loan. It is always advisable to liquidate existing investments before opting for a loan, unless the loan is at a lower rate than the returns on your investments.