Pandemic Crisis Personal loans: Everything You Need To Know

Lately, the RBI allowed another loan moratorium facility on major acquired loans by people that are to say home loans, personal loans, and small business loans, providing further relief to borrowers struggling with lowering income, job loss, and pay cuts due to 2nd wave of the virus.  

Following the RBI guidelines, many banks and NBFCs are offering personal loans in India at attractive interest rates and terms. These personal loans have become lifesavers during the lockdown and these personal loans for the pandemic crisis are borrower-friendly as they’re available with relaxed norms. Here is all about the features and benefits of the latest personal loans for pandemic relief in India. Take a look:  

Features & Benefits of Personal loans for Pandemic Relief  

Take a look at the features and benefits of the personal loan for pandemic relief:  


  • Personal loan eligibility criteria during this pandemic are quite appealing. 
  • These loans for pandemic relief are only available to existing users of financial institutions. 
  • If you are an existing borrower, salary account holder, or have a pension plan with the financial organization, then you are eligible for these. 
  • You should also have an appealing diary of loan repayments and must have not failed on any EMI payment with the moneylender. Particularly, salary account holders with good CIBIL scores are given preference.

Loan Amount  

Unlike usual personal loans, a personal loan for pandemic relief can be availed up to Rs. 5 lakhs. Nevertheless, you can apply for personal loans starting as low as Rs. 25 thousand to fulfill your instant cash requirements.  

Interest Rates  

You can get these personal loans online at attractive rates of interest. During this 2nd wave of the pandemic, banks and NBFCs are offering personal loans even with interest rates as low as 7.25% p.a.  

Loan Tenure  

Most financial institutions are offering pandemic relief personal loans for a maximum tenure of three years while a couple of moneylenders are providing loans with a duration of up to 5 years.  

EMI Moratorium  

If you are taking an epidemic relief consumer loan, you can be eligible for an EMI moratorium by default. Also, most banks are offering a 3 to 6 months moratorium on pandemic reliefpersonal loans. During the EMI moratorium tenor, you are required to pay only the interest on the loan and you can avoid paying the principal amount.  

Regular Personal loans vs. Pandemic Relief Personal loans  

With the following table you will be able to perceive the major difference between a typical personal loan and the personal loans being offered during the pandemic:  

Basis of Difference  Regular Personal Loan  Pandemic Relief Personal Loan 
Eligibility  Based on monthly income, credit score, employers’ reputation, etc. 


Existing relationship with the moneylender isn’t compulsory. 

Loan applicants must possess an existing relationship with the moneylender. You should have an existing loan, salary account or pension plan with the moneylender. 
Loan amount  Rs. 50,000 to Rs. 20 Lakhs  Rs. 25,000 to Rs. 5 Lakhs 
Interest rate  Ranges between 9% p.a. and 24% p.a.  Ranges between 7.25% p.a. and 15% p.a. 
Repayment tenure  Up to 5 years  Up to 3 years (Few offers up to 5 years) 
EMI moratorium  Up to 3 months  Up to 6 months 

Should you opt for a pandemic relief personal loan?  

As we are not yet sure, how the pandemic situation will drive across the subsequent 3-6 months, experts recommend not to maximize your debt burden until you’re facing a cash crunch. Even if these personal loansare available at low interest rates, you should avail them only when you do not have an emergency fund to satisfy your needs.  

Afinoz understands the current situation, thereby, offers great personal loan offers to those dealing with financial crunch to help them conquer their financial requirements. Following are the additional major benefits of choosing a personal loan from Afinoz:  

  • It will help in planning debt consolidation. 
  • Repayment of debts can be possible. 
  • Help in paying credit card dues.

Although, if you are getting constant income and can pay off your debts timely, you should not avoid applying for personal loans online at this moment.  

In a nutshell  

To wrap up, you can avail thesepersonal loans just in case you contemplate that it does not maximize your debt excessively. If you are an existing customer with the moneylender, you can definitely cash in of pandemic relief personal loans as they need zero or very low processing fees and there are not any prepayment charges too. That signifies you can pay off the loan as things get usual and your previous income gets restored.  

Lastly, you should carefully assess your current financial state and repayment capacity before availing of such loans. To do so, you can consider taking the help of a personal loan EMI calculator.