SBI Kavach Personal Loan: Here’s how Covid patients can avail this credit facility

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State Bank of India (SBI) is offering a collateral-free ‘Kavach Personal Loan’at a very low interest rate to help people meet Covid treatment-related expenses. The loan was launched on June 11, 2021 and it covers expenses of covid treatment of self and family members of the customer.

Under this scheme, customers can avail of loans up to Rs 5 lakh at an effective interest rate of 8.5% per annum for 60 months which is inclusive of three months moratorium. This product is being offered under the collateral-free personal loan category and comes at the cheapest rate of interest under this segment. Reimbursement of expenses already incurred for Covid-19 related medical expenses is also be provided under the scheme

Dinesh Khara, chairman, SBI said during the launch, “We believe this new scheme will offer much-needed financial assistance to the people to manage the Covid treatment-related expenses without any hassle. 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.”

Who can avail of the loan?

This scheme is for salaried as well as non-salaried customers along with pensioners and their family members who have been found Covid-19 positive on or after April 1, 2021.

Interest rate – 8.5%

Loan tenure – 60 months (including moratorium of 3 months)

Documents required for availing the loan

· Covid positive report

· No collateral

Loan amount

· Customers can avail of this loan starting at Rs 25000 up to Rs 5 lakh as per eligibility

· The loan will be over and above the existing loans, if any

Where to apply for this loan

· SBI Branch

· Pre-approved through YONO

Processing fee

It has zero processing fee without any foreclosure charges and pre-payment penalty for customers.