Amid second wave of Corona virus pandemic, State Bank of India (SBI) has launched a collateral-free Personal Loan Scheme up to Rs 5 Lakh for Covid affected customers. The COVID Personal Loan scheme by SBI is termed as Kavach Personal Loan. It can be used to cover medical expenses owing to treatment of COVID-19 of self or family member, found to be Covid Positive on or after April 1, 2021.
The state owned bank released the details of the scheme through a press statement. Just a few days back, SBI chairman Mr Dinesh Khara had announced the launch of COVID Personal Loan and other COVID business loan schemes in joint press conference with Indian Banks’ Association (IBA)
SBI Kavach Person Loan Details
Product
SBI COVID Kavach Personal Loan
Type of loan
Term Loan
Eligibility
SBI Customers, including Salaried, Non-Salaried & Pensioners
Tenure
60 months, including 3 month’ moratorium i.e. 57 EMIs
Rate of Interest
Fixed; 8.50% (at least 100 bps lower than regular SBI Personal Loan)
Processing fee
NIL
Pre-payment Penalty
NIL
Security
NIL
Foreclosure Charges
NIL
The COVID Personal Loans up to Rs 5 Lakhs will be available at fixed rate of interest i.e. 8.5% per annum for 5 years or 60 months. This is at least 100 bps lower than regular SBI Personal Loans. Furthermore, the bank has also offered a three months moratorium on EMI repayment for this loan so total EMIs will be 57 + interest accrued during moratorium. This way the families undergoing financial crisis due to COVID related hospitalisation etc will get access to collateral free affordable loan along with immediate relief from EMI repayment.
Those who have already paid for COVID treatment can also avail of this facility to reimbursement the expenses.
The bank said in the press statement: “We believe this new scheme will offer much-needed financial assistance to the people to manage the COVID treatment-related expenses... Our aim is to provide access to monetary assistance - especially in this difficult situation for all those who unfortunately got affected by COVID."
Written By Reshma RawatAssistant Content ManagerCredit Cards, Credit Score, Personal Loan, Home Loan, etc.
Reshma Rawat is a passionate writer with a decade of experience in writing for a variety of domains (finance, technology, lifestyle, e-commerce, real estate, etc.). Currently, she is working as Assistant Manager - Content @MyMoneyMantra and writes blogs & webpages on financial products (loans, credit cards, insurance, government financial policies, mutual funds, etc.).
