The country's leading lender State Bank of India (SBI) in order to help its customers in this grim hour has come up with a personal loan product especially for Covid 19 patients or for meeting medical expenditure incurred in the treatment of Covid.
The new loan product coined as Kavach Personal loan can be availed by bank's customers who have contracted Covid 19 infection or can also borrow this loan for the Covid treatment of his or her family members.
Eligibility: For Covid treatment of self or family member who are diagnosed with Covid 19 on or after April 1, 2021
Targeted group: The bank's targeted group for the product includes bank's customers who may be salaried, non -salaried and even pensioners.
Interest rate on the Kavach personal loan: It is the lowest personal loan offering at the rate of 8.5 percent per annum. Typically being unsecured in nature i.e. without being backed by any collateral, personal loan interest rate is generally on a higher side.
Tenure of the loan: 5 years that is inclusive of 3 month moratorium
Repayment schedule: Repayment of the principal and interest amount has to be made in 57 EMIs and that also includes the interest amount charged during the moratorium period.
Minimum and maximum loan limit: Minimum loan amount that can be sanctioned under the scheme: Rs. 25000 and up to Rs. 5 lakh depending on the borrower's profile. Also, there is no processing fee, fore closure or pre-payment penalty linked to this loan facility.
How to apply for SBI Kavach Personal Loan for Covid Treatment?
The new SBI Kavach personal loan can be applied for by visiting the bank branch and duly completing all the formalities, documentation , KYC etc.
Another route is via the digital channel, wherein Kavach Personal loan comes as a pre-approved offer via Yono). Pre-approved loan offer can be easily secured and sanctioned within minutes at the customer's convenience after following some simple steps over the Yono app.
Importantly, the loan scheme also provides reimbursement for the amount that has been already incurred by the borrower towards the treatment of coronavirus.