On Friday, the State Bank of India launched a collateral free loan named Kavach Personal Loan. The pandemic has made people across the country suffer several crisis one being financial stress. Through a statement, the bank informed that the loan will cover expenses of COVID-19 treatment for customers and their family members.
The State Bank of India clarified that the scheme will allow its customers to avail loans up to five lakhs at an interest rate of 8.5 per cent per annum for 60 months which is inclusive of three months moratorium. The scheme is directed to support customers to overcome their medical expenses and needs.
The bank stated, loans under the Kavach scheme are being provided “under the collateral-free personal loan category and comes at a cheapest rate of interest under this segment.”
The bank in a statement further added, “This unique product is being offered under the collateral free personal loan category. Reimbursement of expenses already incurred for COVID-19 related medical expenses shall also be provided under the scheme.” “The ‘Kavach Personal Loan’ will also be part of COVID-19 loan book being created by banks in the line with RBI’s COVID-19 relief measures, it added.
Dinesh Khara, Chairman of SBI expressed, “We believe this new scheme will offer much needed financial assistance to the people to manage the COVID-19 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 the disease.”
