To provide loan to its customers facing financial stress on account of COVID treatment-related expenses, State Bank of India (SBI) has introduced a collateral-free offering called ‘Kavach Personal Loan’.
The loan covers expenses of COVID treatment of self and family members of the customer.
Under this scheme, customers can avail loans up to ₹5 lakh at an effective interest rate of 8.5% per annum for 60 months which is inclusive of three months moratorium.
Reimbursement of expenses already incurred for COVID related medical expenses will also be provided under the scheme.
Dinesh Khara, Chairman, SBI said, “We believe this new scheme will offer much-needed financial assistance to the people to manage the COVID treatment-related expenses without any hassle.”
This loan product will also be part of the COVID loan book being created by banks as per RBI's COVID relief measures, SBI said.
