Coronavirus: Bank of Baroda launches personal loan for existing retail borrowers

State-run Bank of Baroda on Wednesday said it is offering personal loan of up to Rs 5 lakh to its existing retail borrowers to meet their liquidity demand amid the COVID-19 crisis.

The lender is offering this loan to its existing borrowers who have taken home loan, loan against property or auto loan, and have a credit score of 650 and above.

"The objective of Baroda Personal Loan COVID 19, is to provide ease to tide over the liquidity mismatch to existing customers. The customer may approach their existing branches to avail this personal loan up to a maximum limit Rs 5 lakh in a hassle free manner," the bank said in a release.

The loan is being offered for a period of five years and at an interest rate starting from 10.25 per cent.

The bank is offering a moratorium of three months (within the overall 5-year repayments period). The borrowers, however, will have to pay interest during the moratorium period.

Under the scheme, home loans and loan against property customers can avail personal loan up to 10 per cent of their existing loans, auto loan borrowers can get up to 20 per cent of their current loans.

The lender will be charging a penal interest of 2 per cent in case of any overdue amount.