‘Kavach personal loan’ scheme for COVID-19 patients has been launched by State Bank of India (SBI) on June 11. Collateral free personal loans up to Rs 5 lakh at annual interest rate of 8.5 percent are provided under the scheme by the state-run lender.
Collateral Free Personal Loan
SBI said that these personal loans are kept collateral free in order to enable the customers to meet medical expenses of self and family members for COVID-19 treatment.
The statement issued by the bank read that the scheme which was launched by the Chairman of SBI, Mr. Dinesh Khara shall allow the customers to “avail loans up to Rs 5 lakh at an effective interest rate of 8.5 percent per annum for 60 months which is inclusive of three months moratorium”
SBI said that these loans are offered under the collateral free personal loan category under the kavach scheme are being offered. Also that these come at at the cheapest rate of interest under this segment.
The bank clarified that the under the scheme, reimbursement of expenses already incurred for COVID-19 related medical expenses shall also be provided.
Monetary Assistance To Customers
Chairman SBI said that the aim, under this strategic loan scheme, is to provide access to monetary assistance – especially in this difficult situation for all those who unfortunately got affected by COVID. Financial solutions for customers suiting their requirements is what SBI strives for.
The statement by SBI further added that this loan product will also be part of the COVID-19 loan book being created by banks as per RBI’s COVID relief measures.
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