is he State Bank of India (SBI) recently announced a new personal loan plan – Kavach Personal Loan. The goal is to provide financial assistance to thousands of people seriously affected by the second wave coronavirus pandemic. The lender said the unsecured loan would cover the costs of COVID-19 treatment for itself and the client’s family members.
“We are pleased to present SBI Kavach Personal Loan Scheme to help people affected by the COVID-19 crisis. We believe this new scheme will offer people much-needed financial assistance to manage the costs associated with COVID treatment without any problem, ”said Dinesh Hara, SBI chairman.
Personal loan SBI Kavach
Kavach Personal Loan loans will be unsecured. Borrowers do not need to pledge any assets as collateral when applying for a loan under the SBI Kavach Personal Loan Plan. Under this scheme, clients will be able to use loans of up to 5 lakhs for a period of 5 years. The minimum loan amount was set at Rs 25,000. The interest rate will be 8.5% per annum. In addition to the low interest rate and flexible tenure, the borrower will also receive a three-month loan moratorium. “This unique product is offered in the category of unsecured loans for individuals and has the lowest interest rate in this segment,” the bank said.
Clients can also apply for this loan to pay for their previous medical expenses. “Reimbursement of already incurred medical expenses related to COVID-19 will also be provided under this scheme,” the SBI said.
Individuals, including salaried, unpaid and retired people, will be eligible for SBI Kavach Personal Loan. Borrowers can apply for a loan through the SBI online banking portal. “Through this strategic lending scheme, our goal is to provide access to cash assistance – especially in this difficult situation for all those unfortunately affected by COVID,” added Hara.
“At SBI, we are constantly working to create financial solutions for clients that meet their needs,” he said.
This loan product will be part of the COVID loan portfolio created by banks following the COVID relief measures taken by the Reserve Bank of India (RBI). “In these difficult times, SBI is committed to taking care of clients’ financial concerns related to coronavirus treatment and other personal expenses in order to effectively overcome the battle with COVID,” SBI said.
Banks have completed the development of three product kits to create the COVID book under the RBI liquidity scheme. These measures include a loan for a medical business for the installation of oxygen plants, business loans for medical facilities, and unsecured personal loans for COVID-19 treatment. Credit rates for oxygen plants will be 7.5%.
“The resurgence of the COVID-19 pandemic in India in recent weeks and related local / regional containment measures have created new uncertainty and influenced the nascent economic recovery that is taking shape. In this environment, the most vulnerable category of borrowers are individual borrowers, small businesses and MSMEs, ”said RBI Governor Shaktikanta Das.