SBI New Personal Loan: Here’re The 10 Lesser Known Facts of The New Offering

In the midst of the Covid epidemic, the State Bank of India is promising its customers a customized SBI personal loan 'Kavach Personal Loan' with a low-interest rate, zero charges, and a low loan moratorium. Customers of SBI can apply for a loan from Rs 25,000 to Rs 5 lakh without any collateral with this SBI personal loan for Covid-19 treatments for themselves and their loved ones. But before settling with the latest offering of SBI, here are the 10 lesser-known facts of SBI Kavach Personal Loan, that you need to know about:

1. For coronavirus treatments, SBI is giving a collateral-free loan with the cheapest rates. The loan amount would range between Rs 25,000 and Rs 5 lakh, based on the eligibility of the borrower.
2. The Kavach Personal Loan would have an annual interest rate of 8.5%. Loans will not be subject to any processing fees. Foreclosure charges and prepayment penalties have also been waived by SBI for its customers.
3. SBI Kavach Personal Loan would have the lowest interest rates in this segment and a flexible term of 5 years. A three-month loan moratorium will also be provided to the eligible customers by SBI.
4. Both salaried and non-salaried customers, as well as retirees and their family members, can apply for this new personal loan.
5. Customers applying for this loan must submit a Covid-19 test report to the bank as a part of the documentation. To obtain this personal loan from the bank, the borrower does not need to provide any collateral.
6. Those who test positive for Covid-19 on or after April 1, 2021 are eligible to apply for SBI Kavach Personal Loan.
7. Customers can verify their eligibility and loan amount at their local SBI branch and can also acquire it using the YONO mobile banking app of SBI.
8. Upon successful verification, the loan amount will be credited to the customer's salary, pension, or savings account.
9. SBI has also recently stated in a release that "Reimbursement of expenses already incurred for COVID-19 related medical expenses shall also be provided under the scheme."The bank has also further said that "In these trying times, SBI is committed towards taking care of customers' financial emergency for covid treatment and other personal expenses in order to effectively overcome the COVID battle."
10. By introducing this loan scheme, SBI Chairman Dinesh Khara has also said that "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. It's our constant endeavor at SBI to work towards creating financial solutions for customers suiting their requirements."