SBI news | SBI’s Kavach Personal Loan for Covid Treatment: Find out the details before borrowing
SBI’s Kavach Personal Loan for Covid Treatment: Know Details Before Borrowing | Image credit: BCCL
New Delhi: To provide financial assistance to customers struggling with cash shortages during a pandemic, State Bank of India (SBI) is offering a Covid-19 treatment loan at the lowest interest rate. The public state lender has on or after 1.
The safety-free personal loans are designed to allow customers to cover medical costs for themselves and family members for COVID-19 treatment, the SBI said.
The program, initiated by SBI Chairman Dinesh Khara, will enable customers to “take out loans of up to Rs 5 lakh at an effective interest rate of 8.5 percent per year for 60 months, including a three-month moratorium,” said it in a statement from the bank.
Customers can avail a minimum loan of Rs 25,000 and a maximum of Rs 5 lakh according to their eligibility. The term of the loan is 5 years, including a three-month moratorium. For the 60 month loan, the amount must be repaid in 57 EMIs including the interest charged during the moratorium.
Loans under the Kavach program are “offered under the category of safety-free personal loans and at the lowest interest rate in this segment,” said SBI.
The reimbursement of costs already incurred for COVID-19-related medical expenses is also provided for under the system, the bank clarified.
Dinesh Khara, Chairman of SBI, said: “We are excited to launch the SBI Kavach Personal Loan Program to help those affected by the COVID-19 crisis. We believe this new program will provide people with the much-needed financial assistance to easily manage expenses related to COVID treatment. Our goal is to enable access to monetary aid with this strategic loan program – especially in this difficult situation for everyone who is unfortunately affected by COVID. It is our constant aim at SBI to work to create financial solutions for clients that meet their needs. “
The bank will sanction the loan based on requirements such as the CIBIL score and the borrower’s ability to repay the loan. However, this still depends on the bank’s internal policies. The interest rate charged by SBI on the Kavach personal loan is 8.5% per annum; this rate is currently set on the lower page. In general, the interest rates on unsecured personal loans, that is, loans sanctioned without collateral, are higher.
Currently, the personal loans offered by SBI have a term of five years and an interest rate of between 9.6% and 13.85%. In addition, borrowers must pay a processing fee of 1.5% of the loan amount (a minimum of 1,000 rupees and a maximum of 15,000 rupees) plus goods and services tax.
To take advantage of the Kavach personal loan, SBI customers can visit any of the nearest SBI branches. By visiting the bank branch and properly completing all formalities, documents, KYC (Know Your Customer), etc., the loan can be sanctioned. For those who use the SBI Mobile Banking service, this loan can be availed through the digital channel. The loan is usually pre-approved through SBI’s YONO app and you will receive the loan amount instantly.