To mitigate financial distress amid the second wave of coronavirus pandemic, the State Bank of India (SBI) has recently unveiled a new personal loan plan — Kavach Personal Loan. Under this scheme, an individual can take loans starting from Rs 25,000 to up to Rs 5 lakh to “cover expenses of COVID-19 treatment of self and family members," the lender said. The loan will collateral-free.
“With this strategic loan scheme, our aim is to provide access to monetary assistance – especially in this difficult situation for all those who unfortunately got affected by COVID. It’s our constant endeavor at SBI to work towards creating financial solutions for customers suiting their requirements," said Dinesh Khara, chairman, SBI.
All you need to know about SBI Kavach Personal Loan
India’s largest lender is offering a collateral-free loan at the lowest interest rates for coronavirus treatments. The loan amount will be ranging from Rs 25,000 to Rs 5 lakh depending on the eligibility.
Interest and other charges
The loan under Kavach Personal Loan will have an interest rate of 8.5 per cent per annum. There will be no processing fee for availing loans. The bank has also waived-off the foreclosure charges and pre-payment penalty for customers.
Tenure and Loan Moratorium
Apart from lowest interest rate in the market, SBI Kavach Personal Loan will offer a flexible tenure of 5 years. The borrower will also get three months of loan moratorium. “This unique product is being offered under the collateral-free personal loan category and comes at the cheapest rate of interest under this segment," the bank said.
Who can apply?
This scheme is for salaried as well as non-salaried customers along with pensioners and their family members. Those who have been found Covid-19 positive on or after April 1, 2021, can apply for SBI Kavach Personal Loan.
Documents required for availing the loan: The report of Covid-19 test of customers who are applying for loan is a must. The individual does not need to submit any collateral to avail this personal loan from the bank, SBI said.
Where to apply for this loan:
Customers can visit the nearest SBI branch to check the eligibility and loan amount. SBI users can also book it through YONO mobile banking application.
The loan will be credit to the Salary or pension or SB account of the customer.
Customers can also apply for this loan to pay their previous medical expenses. “Reimbursement of expenses already incurred for COVID-19 related medical expenses shall also be provided under the scheme," SBI mentioned in a release.
This loan product will be a part of the COVID loan book created by banks following COVID relief measures by Reserve Bank of India (RBI). “In these trying times, SBI is committed towards taking care of customers’ financial emergency for covid treatment and other personal expenses in order to effectively overcome the COVID battle," SBI said.