The State Bank of India (SBI) on 11 June initiated the “Kavach personal loan” scheme for patients of Covid-19. According to the scheme, the state-run leader is offering collateral-free personal loans of Rs 5 Lakh at just the annual interest rate of 8.5 %. It is looking to aid the customers to meet medical expenditures of self and family members for Covid-19 treatment.
The statement issued by SBI said, “This loan product will also be part of the COVID-19 loan book being created by banks as per RBI’s COVID relief measures, the statement issued by SBI further added.”
The scheme which was launched by SBI Chairman Dinesh Khara will allow customers to “avail loans up to Rs 5 lakh at an effective interest rate of 8.5 per cent per annum for 60 months which is inclusive of three months moratorium”, said a statement issued by the bank.
“This unique product is being offered under the collateral-free personal loan category. Reimbursement of expenses already incurred for COVID related medical expenses shall also be provided under the scheme,” revealed in a press release.
Dinesh Khara, Chairman of 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. With this strategic loan scheme, we aim to provide access to monetary assistance – especially in this difficult situation for all those who unfortunately got affected by COVID.”