The SBI has announced a unique loan scheme to help its customers cover the expenses of COVID-19 treatment. SBI customers can avail 'Kavach Personal Loan,' to cover the expenses of COVID-19 treatment of self and family members. A person can avail loan of up to Rs 5 lakh for a period of 5 years at an interest annual rate of 8.5 percent.
The bank has said that the loan borrower needs not to pledge any asset as security as the 'Kavach Personal Loan' is collateral-free. The minimum amount of loan has been fixed at Rs 25,000 by the SBI.
In addition to these facilities, the loan borrower will also be given a loan moratorium of three months.
The State Bank of India will provide, under this scheme, reimbursement for expenses bared by the borrower for COVID-related treatment.
The loan can avail by both, salaried and non-salaried customers, as well as, pensioners and their family members, who have tested positive for COVID-19 on or after April 1, 2021.
The SBI has announced that the loan will be over and above any existing loans of the customers.
Customers who wish to avail the loan can apply for it at any branch of the SBI and can also get it pre-approved through YONO mobile app.
The loan can be availed without any processing fee, and in addition to this, the SBI also announced that it is waved off the foreclosure charges and pre-payment penalty for customers.
