Kavach Personal Loan: SBI launches collateral-free loan scheme for Covid-19 patients

sbi kavach loan — Image Source : INDIA TV
Kavach Personal Loan: SBI launches collateral-free loan scheme for Covid-19 patients

The State Bank of India (SBI) has launched a collateral-free unique loan offering – ‘Kavach Personal Loan’. The loan covers the expenses of Covid-19 treatment.

Under this scheme, the bank will provide loans up to Rs 5 lakh at an effective interest rate of 8.5 per cent per annum for 5 years. The bank is also offering three months moratorium which is included in the 60 months.

Also, the bank is providing reimbursement of expenses already incurred for Covid related medical expenses under the scheme.

Dinesh Khara, Chairman, SBI, said that the product is being offered under the collateral-free personal loan category.

“We are happy to introduce SBI Kavach Personal Loan scheme to help people affected in the wake of Covid crisis. We believe this new scheme will offer much-needed financial assistance to the people to manage the treatment-related expenses without any hassle," he said.

He said that the lender's aim is to provide access to monetary assistance with this strategic loan scheme to all who were affected by the virus.

Khara added that the bank is committed to taking care of customers’ financial emergency for Covid treatment and other personal expenses in order to beat the pandemic.

Kavach Personal Loan will also be part of the Covid loan book being created by banks as per the Reserve Bank of India's Covid relief measures.