The Wuhan-born virus has drastically disrupted the lives of all human beings on the planet. The economic cycle has been ruptured, and many companies had to shut down their business, which again affected the daily wages of many people around the world. Uncountable miseries were caused by COVID-19 in 2020.
Many have lost their close ones in the battle of life and death. The loss of near and dear ones is not a statistical measure. It is a personal loss, and it is felt on a personal level. However, a dent in personal finance is another misery people have had to face.
Impact of COVID-19 on personal finance:
- The emergence of Covid has already paralysed the earning power of many. The earning situation is worse for people who earn through daily wages or contractual work.
- The cost of medical expenses becomes a heavy burden.
- The severity of Covid cases ranges from regular headaches to breathlessness. The situation becomes worse in case of a shortage of oxygen, required medicines, etc.
- Hospital bills may escalate from thousands to lakhs in a matter of days. So, there is no fixed amount of expense for Covid treatment. An individual is therefore exposed to the entire range of treatment costs.
How can a personal loan help you?
- People are first attracted to credit cards for immediate payments of unexpected hospital bills. But wait, there is a catch there. The first is that the credit period allowed is only up to a maximum of 45 days, depending on the card issuer. The second is that the interest charged is up to 2% to 3% per month. This is around 24% to 36% per annum.
- A credit card may not be a good option if the treatment cost is beyond your repayment capacity. In such a case, the credit card interest cost would only add to your financial stress.
- A personal loan can come to your rescue. A personal loan is the quickest solution in the financial world. Urgent financial expenses need urgent finance. This urgency is well served by a personal loan.
- The application process is straightforward and can be completed online. All documents need to be submitted online. Also, verification and signature can now be done via the Aadhar-based process. This further saves your time, and you do not need to visit the bank branch. The overall process is faster for those earning a salary that directly gets credited to a bank account.
- Once the approval is given, the amount is transferred to your bank within a fraction of seconds. That’s it!
- A personal loan helps you to choose the plan and amount as per your repaying capacity. A personal loan EMI calculator guides you with the monthly cash outflow required. The personal loan interest rate is decided by the banker depending on your income and risk profile.
- The personal loan EMI calculator provides certainty in an unpredictable environment. When health is a priority, finance should not be a focus area. The personal loan interest rates are within the normal range with relaxation in the payment norms.
- Considering the worrisome situation, the Reserve Bank of India has notified Resolution Framework – 2.0 to aid in Covid-related financial stress of individuals and small businesses. Through the notification, the RBI has asked the lending institutions to provide reliefs such as rescheduling payment cycles, grant of moratorium periods, conversion of interest cost into another loan, waiver of interest on interest, etc.
Panic only creates a ruckus in daily life. Hence, stay safe and calm. With a quick application process, a personal loan can help you calm yourself during any urgent and unexpected financial needs.