In its endeavor to provide a significant relief to its customers facing financial stress due to COVID treatment related expenses, State Bank of India (SBI) has launched a unique collateral-free loan scheme ‘Kavach Personal Loan’. Under this personal loan will be provided to the customers. The loan covers the cost of COVID treatment of the customer himself and family members. SBI Chairman Dinesh Khara launched it. Under this scheme, customers can avail a personal loan of up to Rs 5 lakh at an effective interest rate of 8.5 per cent per annum for 60 months, with a moratorium period of three months. This unique product is being offered under the co-lateral free personal loan category and is available at the lowest interest rate in this category. Reimbursement of expenses already incurred for medical expenses related to COVID will also be provided under this scheme.
Mr Khara said, “We are delighted to launch SBI Kavach Personal Loan Scheme to help the affected people in the wake of the COVID-19 crisis. We are confident that this new scheme will provide necessary financial assistance to the people to meet the expenses related to COVID treatment without any hassle. With this strategic credit plan, we aim to provide access to monetary support – especially in this difficult situation to all who have been unfortunately affected by COVID. Our constant endeavor at SBI is to work towards creating financial solutions tailored to the needs of the customers.
In the present difficult times, State Bank of India has made every effort to keep in mind the financial needs of the customers for COVID treatment and other personal expenses towards effectively combating COVID. This loan product will also be part of the COVID loan book being prepared by the banks as per the COVID relief measures of RBI.