SBI Launches ‘Kavach Personal Loan’ Scheme for Covid-19 Patients

In its endeavour to provide much-needed relief to its customers who are facing financial stress on account of Covid-19 treatment-related expenses, State Bank of India (SBI) has launched a collateral-free unique loan offering – ‘Kavach: Personal Loan’. The loan covers expenses of Covid-19 treatment of self and family members of the customer.

This product was launched by Dinesh Khara, Chairman, SBI. Under this scheme, customers can avail loans up to Rs 5 lacs at an effective interest rate of 8.5 per cent per annum for 60 months which is inclusive of three months moratorium. This unique product is being offered under the collateral-free personal loan category and comes at the cheapest rate of interest under this segment.

Reimbursement of expenses already incurred for Covid-19 related medical expenses shall also be provided under the scheme, the Bank said in statement.

Khara said, “This loan product will help people affected in the wake of Covid-19 crisis. 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 Covid-19. It's our constant endeavour at SBI to work towards creating financial solutions for customers suiting their requirements”

In these trying times, SBI is committed towards taking care of customers’ financial emergency for covid treatment and other personal expenses in order to effectively overcome the Covid battle. This loan product will also be part of the Covid loan book being created by banks as per RBI's Covid relief measures.